There's a lot to be said about how blockchains can upend much of the infrastructure that we rely on every single day, from banking to social media, from gaming to managing entire supply chains. Anywhere that data flows, a blockchain revolution is waiting to happen. Although, this young idea is also very chaotic, penned with the idea of decentralization that can at times turn into a messy rule by an unruly mob. But as we'll discover in this Tezos review, does it always have to be like that?
Tezos appears like any other multi-purpose blockchain, made to be very powerful and modular for a variety of different applications where smart contracts can be executed, and dApps could thus be programmed and deployed. Beneath it all, however, is decentralized on-chain governance that may yet prove to be the most stable, sustainable, and inclusive of all the networks today, where discourse is settled with maximal civility. So, let's get into our Tezos review to find out more.
What Is Tezos?
Tezos, as mentioned earlier, is a very flexible multi-purpose blockchain network. It is supposedly called a “self-amending” ecosystem, which pairs with its unique on-chain governance model that is based on the idea of a self-sustainable and inclusive digital commonwealth. It's a concept where governance is truly democratized and could even help prevent expensive and messy hard-forks. Responsible for supporting all this development is the Tezos Foundation, based in Switzerland.
How Does Tezos Work?
Made open-source, Tezos combines several key elements that ensure this network could not only govern itself orderly but also evolve over time with new features and upgrades without costly changes such as needing to fork. The latter maintains that Tezos will remain stably governed and can prevent unnecessary downtimes or distractions as the network as a whole continues to grow. One key component that we've uncovered for this Tezos review is LPoS.
Or a Liquid Proof-of-Stake consensus model, which was first showed off in early 2017. This works mostly the same with any PoS system, where token holders can partake in the consensus by locking up their tokens, and in return, they're able to validate blocks and secure the Tezos network. Within Tezos, block generation is referred to as “baking,” and validators are “bakers.” Otherwise, there is another major difference in that Tezos enables users to ‘delegate' tokens to bakers.
By doing so, users won't need to transfer ownership of their Tezos XTZ tokens but merely give the bakers of their choosing the right to take a greater role in the on-chain consensus. When the baker earns their share of the block rewards, a proportional amount will then be awarded to those users who've delegated their tokens. Thus, this makes Tezos a more inclusive network where smaller token holders can validate blocks and earn rewards, which they would otherwise not be able to afford.
Who's Using Tezos In The Real World?
The side effect of its unique take on traditional Proof-of-Stake that we've looked at earlier in our Tezos review are numerous. We'll get into that a bit later, but know that its benefits have gained a following in Tezos' ecosystem, which is growing rapidly by the day. The latest big-brand name to join up with Tezos is the video game maker and publisher Ubisoft, which has become one of the validators on the Tezos blockchain while experimenting with the idea of blockchain gaming.
The famed Red Bull Racing Honda F1 team (as well as its rival, McLaren) is also a partner, mainly around building NFTs and new experiences with its fans. Societe Generale, one of the largest banks in the world, is working with the Tezos blockchain and has issued its first structured product as a security token on the network as it conceptualizes future CBDC adoption. Exaion, a subsidiary of energy and utility giant, EDF, is using the Tezos chain to track and develop solutions to minimize carbon footprint.
There are plenty of other examples that we can't simply fit in our Tezos review here. These include the use of Tezos' blockchain as the basis for stablecoins and a plethora of DeFi protocols. The already flaming hot NFT market is creeping into Tezos, as well, alongside peer-to-peer music or photo sharing, comics, and other digital content. Werenode, an expansive charging network for electric cars with ties to Renault, Nissan, and Mitsubishi, is using Tezos' tech and so many more.
What Are The Benefits Of Adopting Tezos?
So far then, it looks like our Tezos review here is onto a winner. Not only does it have a lot of clever tech underneath, but that has translated into a massively burgeoning ecosystem. There certainly are a few other reasons why Tezos is such a compelling option for those making the switch to blockchains…
Security – Tezos uses the Michelson programming language for its smart contracts, which was first unveiled in a 2014 whitepaper. Along with that is helping to secure the many dApps built on Tezos and how Michelson can ensure top-notch code security and robustness. As such, Tezos is also a very capable network for mission-critical and sensitive industries, such as semiconductor manufacturing, nuclear power plants, aerospace, and more.
Energy-Efficient – Being a proof-of-stake network, Tezos is inherently far more energy-efficient than the typical proof-of-work systems underpinning large blockchains such as Ethereum or Bitcoin. It's thus a very eco-conscious choice and is environmentally sustainable to compute.
Scalable – Tezos is incredibly modular and can upgrade through mechanisms that don't require a fork for every major network update. Hence, it can continually upgrade with minimal disruptions while it keeps adding new functions. This is helped by efficiently separating various parts of Tezos, such as processing transactions and consensus, into different protocols. Already, Tezos can process around 1,000 TPS (transactions per second), which is far higher than most other blockchains.
What Are Tezos' Native XTZ Cryptocurrency Tokens?
The native cryptocurrency of Tezos is the XTZ token. Back in mid-2017, Tezos held one of the largest ICOs in history, raising $232-million (from 65,681 BTC and 361,122 ETH) by selling 763,306,929.68 XTZ. Tezos' XTZ can function as a utility token, such as for paying off transaction fees on the network or for executing smart contracts. However, the fees themselves are very low. For the most part, then, XTZ tokens are primarily used as a governance tool and taking part in consensus.
Voting rights aside, bakers and delegators can earn XTZ through block rewards, where 16 XTZ are awarded per block with a speedy block timing of just 60 seconds. As for Tezos' tokenomics, it's inflationary by nature, where the average inflation rate is set to 5.51% per year at most. With this fixed issuance in mind, there are a total of 881,740,357 XTZ right now as of writing this Tezos review, where around 851,769,302 XTZ of them are in circulation.
At the time of our Tezos review here, one XTZ is worth $2.73. This would value its market cap to $2,324,800,510, making Tezos the 44th-most valuable cryptocurrency in the market. Looking at its performance, Tezos' XTZ had gained a very handsome 767.48% from its all-time lows of $0.3146 back in December 2018. Although, there is still a ways to go, as it remains 67.50% down from its all-time highs of $8.40 not too long ago on May 2021.
How Does Tezos' Future Roadmap Updates Look Like?
The future looks very bright, as our Tezos review had immediately found a roadmap for Tezos, which is to arrive 26 days after writing this. This is the so-called ‘Granada‘ update, trailing closely behind ‘Florence' that came in May 2021. This is in keeping with Tezos' promise of continuously contributing to new feature releases and improvements regularly. With the Granada upgrade, we'll be seeing a lot of major changes alongside the typical bug fixes.
One of them is a potentially dramatic reduction in gas fees, which are low enough already, as we can see a decrease nearly to a factor of eight for some smart contracts. Next, we have Emmy*, a replacement of Emmy+. The latter is a planned halving of the block timing from 60 seconds to just 30 seconds, thus speeding up transaction finality. Lastly, we have ‘liquidity baking,' which is more or less a liquidity mining initiative by Tezos to incentive the mass adoption of Tezos' XTZ.
Tezos Review – Conclusion
So, how can we round up our Tezos review? For a start, we're very impressed with what we're seeing here when studying what Tezos is and how it's made an impact with a gigantic splash on the state of blockchains. Yes, there have been more than a few controversies in the early parts of its life, but here and now, Tezos is among the most impressive projects that we've come across. For a start, it promotes an inclusive and open environment for network participation and governance.
On top of all this, it boasts a very powerful blockchain – proven by how far its ecosystem is growing, minute by minute – and modular for a wide range of applications and uses cases. Plus, we have here a network that is secure and robust while being highly scalable and energy-efficient, not to mention the ability to upgrade and evolve seamlessly without forking off any time there's an argument. As a complete package, there's so much that Tezos can accomplish, all on its own.
- Ease of Use
- Project Values
- Tokenomics Model
- Long Term Sustainability
- Unique on-chain LPoS consensus ensures smooth and stable governance.
- A hugely expansive, and continually growing ecosystem of partners and adopters.
- Very secure and robust thanks to its specialized smart contracts programming.
- Incredibly energy efficient compared to most other major blockchains.
- Very scalable, and can maintain seamless network upgrades without needing to fork.
- Transactions are speedy, while network fees are very low (almost negligible).
- Although quite scalable, its throughput speeds are still slower than some other networks.