What is Tezos (XTZ)?

Deep Dive

1. Self-Amending Governance

Tezos’ defining feature is its on-chain governance system. Stakeholders propose, test, and vote on protocol upgrades through a structured four-phase process (Kraken). Approved changes are automatically implemented, avoiding chain splits and enabling continuous evolution—a key advantage over static blockchains. This system has facilitated over 15 protocol upgrades since its 2018 launch.

2. Security-Oriented Design

Built with formal verification—a mathematical method to validate code correctness—Tezos prioritizes security for high-stakes applications like DeFi and tokenized assets. Its native smart contract language, Michelson, is optimized for auditability. Developers can also use mainstream languages like JavaScript via tools like Jstz and Etherlink L2 (Tezos X update).

3. Liquid Proof-of-Stake (LPoS)

Tezos’ LPoS consensus lets any XTZ holder participate in network security by staking directly or delegating tokens to validators (“bakers”). With a minimum 8,000 XTZ (one “roll”) to bake, the system balances accessibility and decentralization while offering ~6% annual staking rewards.

Conclusion

Tezos distinguishes itself through upgradability, rigorous security practices, and inclusive governance—positioning it as a blockchain that evolves with its community. As layer-2 solutions like Etherlink expand its capabilities, will Tezos’ focus on formal verification become the gold standard for enterprise blockchain adoption?