Tezos (XTZ): What is it? Is it a good investment?

Tezos (XTZ) is a decentralized application platform. It has been very successful in the cryptocurrency markets since 2019 and works with smart contracts. 

The Tezos (XTZ) project was released in 2018. It has many special features that set it apart from other cryptocurrencies. For example, unlike other cryptocurrencies, Tezos’ blockchain works with bakers instead of miners. Also, it is built to update and change on its own to avoid difficult forcing.

In this article on Tezos, I explain how the whole concept is structured and works. Also, I provide an answer to your question – “Is Tezos a good investment”?

What is Tezos (XTZ)?

Tezos is a platform for creating and processing smart contracts. The blockchain is intended to be self-modular and upgradeable without the need for a hard fork. 

This means that the Tezos blockchain can implement new changes to the network without forking or splitting into a separate chain. This is Tezos’ way of ensuring that the technology always stays up to date.

A key difference between Tezos and other smart contract platforms such as the popular Ethereum network is that it is backed and operated by Tezos brokers. Instead of physically extracting blocks with expensive hardware, this process is done virtually on Tezos by Tezos-Taking and Tezos-Bakers using a mechanism called LPOS (Liquid-Proof-of-Stake).

The foundation of Tezos

Tezos was developed in 2014 by founders Arthur and Kathleen Breitmann. They published a position paper explaining the principles and rationale behind the project. This was followed by the publication of a white paper, which was more technically oriented.

According to the published Tezos protocol, the foundation held one of the highest and most successful initial coin offerings (ICOs) till 2018, raising $232 million.

At the time, it was the largest ICO, but it was overtaken by Filecoin after just a few months.

How does Tezos work?

Tezos has a blockchain network that can update and change itself by following a set of rules. Unlike other platforms, Tezos has what is called the “blockchain layer”, where the transaction and consensus levels have been combined. It ensures that updates and changes to the blockchain network are democratically controlled.

The three main features of Tezos are:

  • Self-admission
  • Governance on the chain
  • Smart contracts

Tezos wants to use on-chain governance to prevent a hard fork from occurring to make it a unified community. Additionally, Tezos wants to build consensus on the state of the blockchain with Liquid-Proof-Of-Stake (LPoS), where the votes of bakers and delegates have equal value for the decision.

Pros and Cons of Tezos

TermProsCons
BakerProvides more securityPossible data congestion if there are not enough bakers and blocks or smart contracts cannot be processed promptly
Self-amendmentSelf-managed blockchain, no hard fork, that is, no blockchain or community split
On-chain governanceDemocratic decisions by the whole communityProblems can arise if the turnout is permanently too low
LPoSEach stakeholder has the right to participateHigh-stakes network participants also have higher voting rights
DecentralizedNo central control, faster decision making and shorter processing times, more motivation due to clearly defined areas of responsibilityProblems in defining responsibilities, currently too few dApps
Road mapMany different projects are supported by TezosNo clear definition of the direction in which Tezos will develop in the future

Where to buy Tezos (XTZ)?

Binance

Binance is the most famous exchange in the world. It’s among the first to believe in the potential of cryptographic tools. 

One of the outstanding features of Binance is the presence of hundreds of cryptocurrencies – both first generation, such as Bitcoin, and more recent ones like Tezos.

The direct purchase screen on Binance allows in a few seconds to be able to select your current currency, the quantity to be exchanged, and to proceed with the conversion.

eToro

The broker-exchange eToro currently is one of the few complete alternatives on the market.

The eToro wallet is a multi-currency wallet that makes it compatible with tokens and cryptocurrencies of different species and categories. It can be used both to hold and to send one’s assets to other external wallets.

Capital.com

This broker has always been reliable in the online cryptocurrency trading sector. If you just want to try the platform or test your ing strategies on Tezos (including through short selling), Capital.com allows you to start with a simple test account. It does not require specific costs and can also be used via mobile devices.

Kraken

Today it is considered one of the most used exchanges in the world, with thousands of users and a considerable number of daily exchanges.

The platform is simple to manage and the options are very basic. Each user can open his account, to be able to add a payment system of his choice among those available and subsequently to proceed with the conversion into Tezos.

Tezos (XTZ) contract address

Below is the Tezos (XTZ) contract address for the BNB Smart Chain network.

BNB Smart Chain (BEP20): 0x16939ef78684453bfdfb47825f8a5f714f12623a

Is Tezos (XTZ) safe?

The absence of a central database makes it impossible to hack the data to change or damage information. Even if a hacker is successful, no changes can be made without the consent of the community.

The advantage of being decentralized is that there cannot be a central authority that controls the blockchain. Thanks to encryption, user information is kept safe and secure.

Tezos (XTZ) current state of the market

According to CoinMarketCap, the XTZ price is $2.97 with a 24-hour trading volume of $96,200,340 at the time of writing. Additionally, XTZ is up 1.77℅ in the last 24 hours and it’s ranked #46 on CMC.

Is Tezos (XTZ) a good investment?

Looking at the developments and challenges, the outlook for Tezos is positive. Currently, Tezos is one of the most fascinating and promising cryptocurrency projects due to its on-chain governance and other features. That’s why the project garnered a lot of attention and received more than $232 million from the ICO.

Tezos’ progress and new developments have been strong recently. Partnerships, the volume of trade, and the number of community members have grown well too.

Tezos (XTZ) Price perdiction

Here are some predictions from popular cryptocurrency experts:

  • Paybis and its analysts are quite optimistic about Tezos this year. They expect the token to continue its upward path towards $10.
  • Long Forecast and its analysts believe that Tezos will reach the Top Ten of the most capitalized cryptocurrencies within the next 4 years.
  • Captain Altcoin believes that if XTZ continues with these growth rates, the token could reach and exceed $100 by 2025.
  • Crypto Rating and its analysts believe that the price of Tezos (XTZ) by 2026 could range between $20 and $30.
  • Wallet Investor and its analysts forecast long-term growth for XTZ to hit $12.15 by 2026.

Generally, crypto experts’ future prediction of Tezos(XTZ) is bullish – which shows it’s worth investing in.

However, cryptocurrency prices are prone to fluctuation and can experience unpredictable rises and falls. So invest only what you can afford to lose.

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Anthony Adewuyi

Anthony is a Content Writer with MakeMoney.ng. He is passionate about Finance, Business, and Tech related topics. He is a Digital Entrepreneur with vast experience in Data Analytics and Advanced Google Analytics

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