About Tezos Crypto - Is Tezos a good investment in 2021?

It’s all about Tezos crypto, a blockchain network that uses smart contracts and supports Non-Fungible Tokens. Tezos Offering a more advanced infrastructure compared to Ethereum.

Tezos with its XTZ token is currently rank 42nd on Coinmarketcap. The price of XTZ as of writing is $2.64 with a market cap of over 2 billion USD.

Tezos is most often compared to Ethereum because they both use smart contracts. However, when it comes to smart contracts, Tezos is still one step further. Is Tezos a good investment? Continue reading for more information.

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Tezos explained

Tezos is a decentralized blockchain system that can self-upgrade through a voting system by the community and facilitates a formal verification process on its smart contract code. It is a technique that works mathematically to determine the validity of the transaction code to increase the security level of smart contracts.

In other words, Tezos is a blockchain network linked by a digital token called Tez (XTZ) Tezos gives reward token owners for participating in the liquid proof of stake consensus mechanism. Tezos does not use a mining system for XTZ tokens like Bitcoin.

How does Tezos work?

Tezos uses an agonistic middleware called “network shell”. In the Tezos system, the transaction protocol and the consensus protocol are combined into one and named the Blockchain Protocol.

The function of the previously mentioned network shell is to assist the communication process between the network protocol and the blockchain protocol. Tezos network shell is agnostic to transaction protocols and consensus protocols.

Tezos uses the Michelson programming language in its smart contract, which is a functional programming language that facilitates formal verification. As the result, the developer can verify their smart contract code mathematically in the existing system.

The existence of a formal verification feature like this is expected to be able to avoid the occurrence of bug errors on the developer, as happened to Ethereum which lost 150 million dollars due to the DAO hack.

Liquid proof stake

Tezos uses Liquid Proof of Stake which is more effective than the Liquid Proof of Work system used by Ethereum.

The Liquid Proof of Stake system means that the block verification process is carried out by the coin owner and can be delegated to a delegated provider that has been chosen by the coin owner.

Meanwhile, the Liquid Proof of Work system means that the block verification process is carried out by the miners through their computers. The greater the amount of Ethereum used, the greater the electricity that must be used by the miners’ devices, and this is quite burdensome.

The liquid proof of stake system from Tezos is more convenient and much more effective without having to spend too many resources because everything runs virtually. This system does not require mining hardware or large amounts of electrical power.

The process for conducting validation in liquid proof of stake is referred to like baking and not mining.

Tezos blockchain

Tezos is a network of digitally linked blockchains called Tezzie tokens (XTZ).

The decision-making system in Tezos is different from the system in Bitcoin and Ethereum. Both cryptocurrencies allow miners to make changes and upgrades.

If there is a pool that does not agree, there will be a hard fork. The result was the emergence of classic Ethereum, Ether Gold, Ether Zero, and so on.

Unlike Tezos, where the decision-making process or protocol changes are carried out by voting by the coin owners. Every decision gets approval from the majority of coin owners and will later minimize the occurrence of hard forks.

Tezos Feature

Features Tezos has many features in common with other blockchains, it is transparent, uses encryption, is decentralized, which makes hackers unable to hack into the network.

In addition to these important features, Tezos has its own uniqueness that makes it different from other blockchains.

Decentralized, automated upgrades, in general, the blockchain upgrade process is very complex and difficult. Tezos is different, it easily makes decentralized automated upgrades.
No hard fork, in the Tezos blockchain there will be no hard fork as happened on the Ethereum blockchain, nor Bitcoin. The decision-making process or protocol changes are carried out by voting by coin owners. Every decision gets the approval of the majority of coin owners.

What solution offer by Tezos?

While the Ethereum blockchain can only facilitate 15 transactions per second, and the Bitcoin blockchain only 4.6 transactions per second, Tezos offers up to 40 transactions per second (TPS).

In addition, Tezos has the ability to apply real-time modifications to the chain as needed. This feature is not available on the Ethereum and Bitcoin blockchains. In other chains, protocol changes can result in hard forks. Tezos will not have Hardfork, this is what makes the difference.

Founder Tezos

Tezos is a digital currency created by Arthur Breitman. He studied mathematics, computer science, and physics in France before moving to the United States.

Arthur Breitman’s wife, Kathleen Breitman, who had worked for R3, a software company focused on database distribution technology, contributed to the Tezos development project.

The two founders have started developing Tezos in 2014 along with several members of the core team. DLS (Dynamic Ledger Solution) is a company that developed Tezos with its head office in Switzerland.

This company collaborates with a company Tezos Foundation which has a task for raising funds that were successful in the ICO process.

Background

In August 2014, Arthur Breitman publish 2 journals, he makes predictions about the decline of Bitcoin and the massive production of tokens. To solve this problem, Arthur offers a self-healing Blockchain solution, Tezos.

In the second journal, Arthur explains that trying to prevent cryptocurrency splits by launching new cryptocurrencies is an irony. But the main goal of Tezos is to be the last cryptocurrency in the world.

Tezos Dapps

Like the Ethereum blockchain, Tezos also supports the development of Dapps. In the Tezos network, the platform runs independently without requiring any third-party permission to facilitate any of its functions.

There are many DApps projects built on the Tezos protocol such as CricTez, a non-fungible token (NFT) fantasy sports Dapp for Cricket, Kalamint, a community-managed NFT marketplace, Stable, USD-backed stablecoin, Wrap Protocol, Ethereum and Tezos bridge, etc. You can see a complete list of all DApps on the protocol on Tezosproject.com.

Tezos uses smart contracts that run independently, making it a permissionless platform and the backbone of the Dapps protocol. Each smart contract can define specific conditions. And must be met before any action is taken to fulfill the contractual obligations.

Does Tezos have smart contracts?

Tezos uses smart contracts using a programming language called Michelson. This programming is stack-based, uses primitive and high-level data types, and has strict static type checking.

The Michelson programming language is a series of instructions that run sequentially. Each instruction becomes a stack input of the result of the previous instruction and rewrites it for the next one.

The stack contains both direct values and structures allocated in the stack, with all values immutable. Before entering the system, the input and output stacks are fixed and monomorphic, and the program is checked first.

All smart contracts are successful because the instruction has been executing on a stack of unexpected length or content.

Tezos and NFT

Tezos blockchain fully supports the growth of Non-Fungible Tokens in its network. Users can create unique and irreplaceable collectibles tokens.

Mc Laren, the world company announcing that they will create a Non-Fungible Token for fans using the Tezos blockchain.

The NFT created by Mc Laren will list McLaren Racing’s history, heritage, and famous drivers. In the partnership between Mc Laren and Tezos Mc Laren will carry the Tezos brand, on the racing outfits of Formula 1 drivers McLaren and IndyCar.

Advantage Tezos for NFT

Tezos NFT’s growth was fast, between February and March reaching 380% in contract calls. From 95,000 in February to 360k contract calls in March and April there was a queue of more than 1,000,000 calls.

Apart from the tremendous improvement, there are several reasons that make TEZOS suitable as the foundation choice for the NFT platform, including:

Environmentally friendly. All PoW chains cause a large environmental impact. With Tezos, which uses the Proof of Stake mechanism, this energy use may save.
Low Transaction Fee. The Tezos transaction fee is around .0004 XTZ about $.0023 or 1/4 of a penny.
Strong NFT Community. You can ask questions on Twitter and get answers or solutions quickly.

XTZ Tezos native token

XTZ is the native token of Tezos. According to data from Coinmarketcap, currently, the total circulating supply reaches 852,451,856.55 XTZ, with a total supply of 882,519,629, there is no maximum supply information on the XTZ token.

Tezos uses liquid proof-of-stake consensus, using the term bakers, to validate nodes on the network. According to Wikipedia, as of January 2021, there are already more than 400 block validating nodes.

What are Tezos staking rewards?

Staking reward is the return of the XTZ holder’s participation in the network for staking. This is the process of holding cryptocurrency and in return will get a reward after deducting the staking fee.

This is similar but not the same as saving money in a bank that earns interest every month. The token holder can delegate to the validator the number of tokens he owns to participate in the staking program. Ideally, the more tokens staked, the more reward will be.

Tezos’ annual yield is currently at 6%, minus the validator’s fee. The first staking participant must wait five weeks before receiving the first reward from the validator. After that, it only takes about 3 days. There is no risk in staking, the worst risk may not get the reward as expected.

Where to stake Tezos?

XTZ token holders can participate in staking at the following addresses, this is a recommendation from Hedgewithcrypto:

Ledger wallet.
Guarda wallet.
Coinbase.
Binance.
Atomic wallet.

How to stake in Tezos? Example steps for staking with Ledger Nano X wallet are:

Visit the Ledger website and download the Ledger live app then install it.
Create an account or selecting an existing account.
Choose Tezos on the staking list and choose validator.
Enter amount token delegate on the network.
Confirm transaction to start staking Tezos.

Tezos wallet

XTZ token users have multiple wallet options to store their tokens. Users can choose one or several wallets, each of which provides its features with all its advantages and disadvantages.

Here are some selected wallets that you can try:

Atomic wallet.
Galleon wallet.
Exodus wallet.
Guarda wallet.
Magma wallet.
ZenGo wallet.
Trustwallet.
Airgap wallet.
Coinbase.
Thanos wallet.

Is Tezos crypto a good investment?

No one knows exactly about the future of Tezos, but from a functional point of view, Tezos is currently working with world-class companies like Mc Laren, which adds value for Tezos.

This proves that the Tezos blockchain is getting good feedback among high-end class people. You can follow the development of the Tezos project for the latest information on the number of projects at tezosproject.com. Currently, there are 135 total projects in the list of all categories.

While the separation of categories itself is Dapp, Defi, NTF, Protocol, education, tools, wallet, and team.

So there is nothing wrong if investors want to invest in Tezos with good hopes in the future. Although currently Ethereum blockchain still outperforms Tezos.

Tezos’ position as an Ethereum competitor is worthy of consideration as an investment asset.

Where to buy Tezos?

The XTZ token is already available on several leading exchanges. You can buy Tezos on Coinbase, Binance, Huobi global, Kraken, Bitpanda, Cex.io, Changenow, or BC Bitcoin.

But the most common recommendations, exchanges that are safe are on Coinbase, Binance, or Huobi global.

How to buy Tezos?

How to buy XTZ refers to which exchange to select, usually requires KYC verification. It’s requiring several documents for the verification process.

You can buy XTZ using a credit card on Coinbase, as well as on other exchanges like Kraken.

Tezos price prediction

The following are some forecasts from well-known forecasting sites for the XTZ token:

Wallet Investor predicts the price of the XTZ will reach $4,398 next year in 2022 and $10,391 in the next five years in 2026.
Digitalcoinprice prediction. XTZ token 2021 to reach $3.85 USD, in 2022 may reach $4.42 USD, 2023 is $5.44 USD, 2024 $6.77 USD,, 2025 is $8.27 USD,, 2026 is $9.2 USD,, 2027 is $9.97 USD, and 2028 $11.25 USD.
Longforecast predicts XTZ drops to $2.09 at the end of 2021, the end of 2022 reaches $2.30, the end of 2023 reaches $3.99, 2024 last year $3.39, 2025 last year $3.41.

Conclusion

The Tezos blockchain is quite worthy of being one of the most popular cryptocurrency assets. Although currently, most altcoins are experiencing volatility risk. Tezos is still one of the tokens of choice for crypto enthusiasts.

The price at the time of writing is $2.64 today drops minus 3.27%, this is a price entry at the bottom on Tezos price history. Smart investors usually buy when the price is dropping. Hold in a few years later then see the price rise again. Smart investors usually buy when the price is dropping.

Note: This article is for informational purposes only, but not as investment advice because crypto assets are risky. You are responsible for your investment.

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