CHAPTER 4

Tezos

Founded: June 2018

Native token: XTZ

Market Capitalization: $5.11B

Smart Contract languages: Python

In this chapter, we will cover the Tezos Blockchain that is very

popular among the Blockchain developers for its unique liquid model.

Proposed in 2014 through a whitepaper and launched in 2018, Tezos

is another Proof of Stake based Blockchain. However, what makes it

different from the others is its “self-amending Blockchain protocol”.

Let’s explore at length.

4.1 Consensus Model – Liquid Proof of Stake

Tezos uses a different version of the Proof of Stake consensus

called “Liquid Proof of Stake”, where the validators validate the

transaction after putting their stakes on the network. As already

discussed, the Tezos Blockchain does not need to fork when the

platform has to be upgraded. Rather, the platform would allow all the

owners of its native cryptocurrency XTZ to vote on the possible

changes to its rules. Once voted and agreed, the software would

automatically update to the new version. The voting process which is

known as “Baking” needs the users to stake their XTZ tokens for

being the participants of the process. The code that updates itself

based on voting is called “Shell”.

4.2 Transaction fees

The transaction fees on Tezos is dependent on the gas consumption

as well as the storage usage.