How Does The Cryptocurrency Tezos Work

How does the cryptocurrency tezos work

How is Tezos different from Ethereum (Here is how)

Tezos (abbreviated, XTZ) is a cryptocurrency which is based on the blockchain and is the first self-evolving cryptocurrency. The core of the decentralized protocol of this cryptocurrency is based on Proof of the Stake (PoS) algorithm.

How does the cryptocurrency tezos work

Tezos cryptocurrency also supports Smart Contracts similar to Ethereum.

Tezos is a generic and autonomous cryptocurrency that can introduce and promote any other distributed office. Bitcoin, Ethereum and other digital currencies can be displayed on the Tezos platform by running the proper interface on the network layer.

Most importantly, Tezos uses an upgrade that allows existing protocols to evolve by modifying their code.

The Tezos cryptocurrency protocol has been coded in the OCaml programming language.

How Does Tezos Compare to Ethereum?

Actual or “Object-oriented OCaml” was created in 1996 by Javier Leroy and other collaborators in the project. OCaml is designed to extend the language of Caml to object-oriented structures.

How does the cryptocurrency tezos work

This programming language is a free and open source project maintained by the French Institute for Research INRIA.

How did Tezos cryptocurrency start?

The founders of Tezos are Arthur Breitman and Kathleen Breitman, who have been expanding the Tezos project with a team of developers since 2014.

Tezos initial coin offering (ICO) in 2017 managed to earn $ 232 million in initial revenue, which was a huge success at the time.

Under the agreement, the Tezos Foundation, headquartered outside Switzerland, will manage the funds raised.

In the first year of the establishment of this network, the Tezos Foundation will have the right to veto the proposals, but will not have the power to make proposals.

In addition, the Tezos plans to eventually dissolve itself unless the XTZ token holders decide to continue to sponsor the foundation using the government system within the blockchain.

Differences between Tezos cryptocurrency and Ethereum

One of the differences between Tezos and Ethereum is the programming language used to implement smart contracts on these platforms.

How does the cryptocurrency tezos work

Ethereum uses Solidity and Tzos uses a programming language called Michelson, which is a functional language and provides formal verification steps in the blockchain.

Formal Verification basically allows developers to prove their smart contract programming codes to be mathematically correct.

Formal Verification proves that some of the properties of the contract will be maintained, but does not necessarily mean that the codes written are 100% correct.

This Formal Verification is used in industries such as nuclear reactors, aircraft and medical equipment, with a small amount of error.

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Due to bugs in the coding of Ethereum smart contracts and to prevent them from occurring, the Formal Verification process has been applied to the Tezos cryptocurrency blockchain.

How does the DPoS algorithm work on Tezos network?

The algorithm used in the Tezos network is based on legal nodes (DPoS). The aim of Tezos blockchain is to provide shareholders with the ability to manage it collectively and improve in all areas.

DPoS or Delegated Proof of Stake reduces the negative impacts of network centralization through the use of witnesses, or legal representatives.

The Anatomy of Cryptocurrency

In total, a number of witnesses sign the blocks. These witnesses are voted by those who use the network with every transaction they make.

Using a decentralized voting process, DPoS is more democratic than other systems. Whenever witnesses create a block, they will receive a sum.

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The amount paid to them is specified by the agents appointed by the shareholders.

DPoS has safeguards to ensure that those who approve the network as representative of the blocks act correctly and without bias. In addition, each signed block must confirm that its previous block was signed by a trusted node.

How does the cryptocurrency tezos work

This reduction in the need for confirmation increases the speed of transactions.

The DPoS also allows more transactions on a block (as compare to proof of work and proof of stake) to be performed.

DPoS technology allows digital currencies to compete at a level with centralized payment systems such as Visa cards and MasterCard.

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