Tezos (XTZ) current price is $0.746 with a marketcap of $587.66 M. Its price is 6.43% up in last 24 hours.
- Tezos (XTZ)
- Live Price $0.746
24h % 6.43%
- Market Cap$587.66 M
- Volume$11.18 M
- Available Supply788.22 M XTZ
More Info About Coin
Two of the tenets of cryptocurrency are decentralization and the use of blockchain technology. Bitcoin is clearly the leader, and always challenged by hard forks and soft forks that lead to new technologies. What Tezos has done is to break from the pack in several very distinctive ways.
Distinction One – Create Its Own Blockchain
You read that correctly. Tezos has developed its own blockchain from the ground up rather than add a layer on top of Bitcoin’s model. The obvious question is why take this approach.
Energy consumption continues to be a key concern for cryptocurrencies in general, and Tezos developers concluded that by using Bitcoin’s model it would be a tough road to hoe moving forward. The Tezos blockchain uses an algorithm that is computationally less complex and therefore energy efficient, but maintains the critical proof-of-state consensus algorithm. This issue of consensus is at the center of its original blockchain creation.
Distinction Two – A New Digital Commonwealth
This phrase sounds strange to those unfamiliar with Tezos, but at its core is a very simple idea – incorporate new innovations into the cryptocurrency and avoid the need for hard or soft forks. One of the biggest drawbacks of hard forks is they split the market of the base cryptocurrency. Tezos sees no reason why this should be the case, as it works against investors new and old.
As we have seen from other cryptocurrencies, being able to attract developers is a key to its long term success. Tezos does this by allowing developers to attach an invoice to suggested protocol upgrades, payable upon the acceptance and inclusion of the proposal to Tezos. Not only does this give developers a high level of motivation, it also ensures development of the cryptocurrency will remain decentralized.
On a personal note, that makes sense and will definitely attract developers. It was not mentioned that payment is made in Tezos tokens, so it amounts to cash in hand for the developer.
How Does it Avoid Hard Forks?
This is a critical question because it would appear that anyone could hard fork from this new blockchain creation. First, any upgrade will be determined by a stakeholder consensus, the rules being established as an act of governance and clearly established and enforced programmatically. While some cryptocurrencies apparently thrive on the presence of a single core development team, Tezos strives to avoid this from happening, thus preventing the possibility of a hard fork.
Remember that hard forks historically have split the market and diluted the value of other cryptocurrencies. In this scenario it is better to preclude the argument and limit the possibility.
To say that Tezos is an ambitious and innovative cryptocurrency concept is severely understating the reality. For many years there have been attempts to improve on the Bitcoin blockchain, Ethereum being among that group. Yet cryptocurrencies in general have had a hard time gaining public acceptance despite hard forks and soft forks of the King of the Hill.
Why not move in a direction away from Bitcoin’s blockchain model? It makes sense, though calling it risky for investors is an understatement. But the founders and developers have a novel idea in trying to stabilize the development of the cryptocurrency rather than the price. When you step back and consider the potential progress that can be made by creating a stable development environment, Tezos makes a lot of sense.
Incentivizing developers through hard coin instead of simply offering them the potential for what is likely to be a fleeting Internet fame is quite an incentive for the serious developer. Attracting the best and the brightest to any endeavor is always the goal, and Tezos has taken a step in this very right direction.
One question is whether Tezos can achieve its overarching goal of creating a new digital commonwealth. This requires agreement from a meaningful number of investors and developers, which may not so easily be arrived at given the significant time and resources invested by a good many people. No doubt it is a long term project, but it will require a belief in Tezos and a defection from other cryptocurrency developers. This is speculative at best.
Should You Become an investor?
This is one of those "glass half full" questions. It is easy to see the tremendous upside potential of Tezos, but the risk is that you are optimistic enough to believe that the critical groups of current investors and developers will conceded that Bitcoin has had its run, and now it's time to move on. If you have patience and are willing to take a risk on quality over quantity, run with Tezos.
Pros & Cons
|A unique and potentially profitable concept||Weak managerial team|
|The team holds highly experienced veteran devs|
|Onchain upgrades achieved through consensus|
BCrypto Investment Tip
The Tezos Project is something we've never seen before. By allowing stakeholders to allocate the development of the protocol, this creates a true decentralized manor which allows developers from all over the world to help create the best blockchain & protocol we have ever seen. Tezos is still very early in its development but its potential is huge and its a must have coin in your portfolio in my opinion.