A brief summary about Tezos (XTZ), and what makes it unique.
What is Tezos?
Tezos is a smart contract focused blockchain which aims to develop advanced technology which will allow it to expand and improve its network without needing to fork it, unlike other blockchains which have undergone several hard forks in order to scale. XTZ is the platform’s governance token which gives token holders the right to vote on platform upgrades and protocol changes. The Tezos whitepaper indicated the shortcomings of popular blockchains, and created a system of delegated governance. The Tezos network has two types of nodes in its proof of stake consensus system - known as bakers, who create new blocks, and endorsers who validate the blocks. In order to participate in the network’s governance system, a node has to stake at least 8000 XTZ. Nodes can however delegate their tokens to bakers, which indirectly gives them voting rights. This staking of tokens gives the network’s participants a financial incentive to act in good faith.
Why buy XTZ?
XTZ is used to participate in baking. It is also used to facilitate transactions on the Tezos network. Tezos has been chosen by high profile clients such as the French banking giant, Societe Generale, to experiment with central bank digital currencies. XTZ is an inflationary asset whose inflation is accounted for by creating new tokens. However, XTZ is also burned in case of dishonest behavior from nodes.
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