Tezos (XTZ) is a blockchain network that is linked to a digital token called a Tezzie or Tez. Since the network uses a proof of stack consensus process, the tokens are not split down. The network is a free and open-source platform for developing and hosting apps and materials. Upgrades to the primary protocol, as well as modifications to the management process, are managed by stakeholders.
Besides that, Tezos (XTZ) is one of a variety of programmable blockchains that run smart contracts, which are small pieces of self-executing code. Decentralized finance (DeFi) services that eliminate the middlemen in traditional banking can benefit from smart contracts.
If you are planning to invest in Tezos, here are a few points that you should consider:
- It recently established a partnership with three Swiss companies to deliver tokenized assets.
Incore Bank, Inacta, and Crypto Finance Group stated at the end of August that they would use Tezos to create DAR-1 coins. Smart contracts will be used to comply with anti-money laundering regulations and improve governance for these new tokens. In addition, Encore Bank announced the debut of staking services for the Tezos network.
2. The second point is that Tezos claims that one of its distinguishing features is its self-amending blockchain, which is “built to evolve.” The concept is that Tezos owners can propose and vote on improvements on-chain, eliminating the need for in-person conversations. The adjustments that have been approved will thereafter be deployed automatically. It’s a unique governing approach that, in principle, lowers the risk of community divisions.
3. Also, Tezos is available on a number of popular cryptocurrency exchanges. This makes it simple for US investors to buy and sell the token in a secure manner. Additionally, investors can earn interest by staking their tokens (either through their exchange or wallet or directly with the Tezos network).
4. Unlike Bitcoin (BTC), Tezos validates transactions and keeps the network safe using the more environmentally friendly proof-of-stake approach. Staking your XTZ ties up your money, allowing them to power the network. At the time of writing, approximately 77 percent of XTZ tokens have been staked, yielding an average of 4.66 percent APR in rewards, according to Staking Rewards, a data source.
5. The fascinating thing about cryptocurrencies is that blockchain technology is still improving, and many problems remain to be solved. At the moment, a number of programmable blockchains are vying for market share with Ethereum, the market leader. Although it was the first to market, it faces network congestion and hefty fees.
Tezos is undoubtedly a contender, and its latest tokenized asset deal demonstrates that its technology has real-world applications. However, it hasn’t seen the same price increases as its competitors. That gain could still happen, but there’s a risk investor won’t be able to forget about the company’s first issues.
Cryptocurrency values are incredibly unpredictable, and they might undergo unexpected declines and surges. If you want to invest in XTZ, you should do so while diversifying your portfolio to reduce risk. Only put your money where you can afford to lose it.