Cryptocurrencies have revolutionized the global financial landscape, introducing decentralized, transparent, and secure alternatives to traditional banking and financial systems. Over the past decade, the adoption of cryptocurrencies has surged, driven by their potential to offer lower transaction costs, faster transfer times, and increased financial inclusivity. Major cryptocurrencies like Bitcoin and Ethereum have paved the way for a multitude of innovative blockchain projects, each aiming to address specific issues or bring unique features to the decentralized ecosystem.
Cryptocurrency Overview
What Is Tezos (XTZ)?
Tezos is a high-performing blockchain and open-source platform for assets and applications, with a strong focus on code security, on-chain governance, and decentralization. Tezos 2.0, the upcoming step in the evolution of Tezos, aims to improve scalability (via layer 2 solutions), composability, and support for mainstream programming languages such as JavaScript, TypeScript, and Python.
Initially built with formal verification in mind, the Tezos protocol enables builders to avoid bugs when developing smart contracts, making it particularly suited to applications requiring a high degree of security and certainty. Tezos’ Liquid Proof-of-Stake (LPoS) consensus mechanism enables any stakeholder to participate, directly or by delegation, in the consensus process and be rewarded for securing the network. Uniquely, Tezos’ on-chain governance system also enables stakeholders to create and vote on protocol upgrade proposals, allowing the protocol to self-amend and upgrade without leading to a split (or fork) in the blockchain. This pioneering system empowers the community without slowing down innovation.
Who Are The Founders of Tezos?
Tezos was conceived by Arthur and Kathleen Breitman in a 2014 white paper under the pseudonym L.M. Goodman, a nod to Satoshi Nakamoto and a reference to a journalist who had misidentified the creator of Bitcoin. In earlier writings, the Breitmans had argued that Bitcoin’s biggest shortcomings were the lack of a governance process that invited contributions from its community, cost and centralization issues raised by its proof-of-work system, the limited expressiveness of its programming language which didn’t allow for smart contracts, and security concerns. Tezos was created to solve these perceived issues.
Arthur Breitman has worked as a quantitative analyst for Goldman Sachs and Morgan Stanley, and as a research engineer for Google X and Waymo. He graduated from the École Polytechnique and the Courant Institute of NYU, where he studied applied mathematics. Kathleen Breitman was a senior strategy associate for R3, a consortium of more than 70 financial firms. She has also worked at Accenture.
What Makes Tezos Unique?
The main features that make Tezos unique are its on-chain governance system and its strong focus on code security and formal verification. Tezos was also a pioneer in implementing the liquid proof-of-stake (LPoS) consensus mechanism.
Uniquely, Tezos’ on-chain governance system allows any user of the network to propose and vote on upgrades to the protocol in proportion to the stakes they hold. The voting takes place entirely on-chain, in five phases, including three voting rounds. Each phase lasts for approximately two weeks, meaning that a full upgrade cycle can take nearly three months. If there’s consensus and a certain quorum is reached, the protocol’s self-amendment feature ensures that the upgrade is implemented, following the wishes of the majority of stakes.
This process focuses on decentralization and works in stark contrast to governance in other protocols, like Ethereum or Bitcoin, where a small group of core developers decide the future of the blockchain. Tezos has also enjoyed staking support from major cryptocurrency exchanges, such as Binance and Coinbase, meaning users can receive rewards based on the XTZ they hold. Not many projects can claim this level of integration and support from the broader crypto community.
How Many Tezos (XTZ) Coins Are There in Circulation?
Tezos’ supply is uncapped, with validator rewards increasing the total supply at a rate of about 4.5% per year. A token fundraising event for Tezos was held in July 2017, in which a total of 65,681 BTC and 361,122 ETH were raised. At the time, this was worth $232 million, securing its place as one of the largest token fundraising events ever held. About 80% of the initial supply went to donors of the fundraiser, while 20% were split equally between the Tezos Foundation and Dynamic Ledger Solutions, the company set up by the Breitmans to develop the blockchain.
How Is the Tezos Network Secured?
Tezos uses a liquid proof-of-stake (LPoS) consensus mechanism, an evolution of the delegated proof-of-stake (DPoS) idea. In LPoS, anyone who meets the minimum threshold—currently 6,000 XTZ—can be a validator (known as “bakers” in Tezos), or delegate their stake to any public baker in the network (even if the original staker doesn’t meet the threshold). This ensures that staking on Tezos can be as inclusive and accessible as possible, democratizing access and ensuring a plurality of validators to secure the network.
Tezos (XTZ) Price Predictions by Year
Here’s a table summarizing the predicted maximum, average, and minimum prices for Tezos (XTZ) for each year, from the current year up to 2035:
| Year | Max Price | Avg Price | Min Price |
|---|---|---|---|
| 2024 | $1.00 | $0.90 | $0.80 |
| 2025 | $3.00 | $2.50 | $1.90 |
| 2030 | $5.00 | $4.50 | $4.00 |
| 2035 | $8.00 | $7.00 | $5.00 |
Read more: Fantom (FTM) Price Prediction 2024, 2025, 2030, 2035 | Is Fantom Worth Holding In 2024?
Detailed Yearly Predictions
2024: Max – $1.00, Avg – $0.90, Min – $0.80
In 2024, Tezos is expected to experience steady growth driven by its unique governance model and increasing adoption for decentralized applications (dApps). Factors contributing to this price prediction include:
- Market Trends: A general positive trend in the cryptocurrency market could boost investor confidence in Tezos.
- Technological Advancements: Improvements in Tezos 2.0, particularly in scalability and support for mainstream programming languages, could attract more developers to the platform.
- Partnerships: Potential new partnerships and integrations with other blockchain projects and traditional financial institutions.
- Overall Market Sentiment: As with all cryptocurrencies, market sentiment will play a crucial role. A bullish sentiment can drive prices higher, while bearish trends could suppress growth.
2025: Max – $3.00, Avg – $2.50, Min – $1.90
By 2025, Tezos is projected to reach new heights, potentially achieving a maximum price of $3.00. This prediction is based on:
- Increased Adoption: More developers and enterprises adopting Tezos for building secure and scalable dApps.
- Enhanced Network Security: Continued improvements in the network’s security and formal verification processes.
- Expanding Ecosystem: Growth in the number of decentralized finance (DeFi) projects and other applications on the Tezos blockchain.
- Regulatory Environment: A favorable regulatory environment for cryptocurrencies could enhance Tezos’ appeal as a secure and compliant platform.
2030: Max – $5.00, Avg – $4.50, Min – $4.00
Looking further ahead to 2030, Tezos could see substantial growth, reaching a maximum price of $5.00. This long-term prediction considers:
- Technological Leadership: Continued innovation and leadership in blockchain technology, particularly in governance and security.
- Mainstream Adoption: Widespread adoption of blockchain technology in various sectors, with Tezos being a preferred choice for secure applications.
- Global Economic Conditions: The global economic landscape and the role of cryptocurrencies as an alternative asset class.
- Market Trends: Long-term trends in the cryptocurrency market, including increased institutional investment.
2035: Max – $8.00, Avg – $7.00, Min – $5.00
By 2035, Tezos is anticipated to achieve significant value, with a maximum price prediction of $8.00. Key factors include:
- Mature Ecosystem: A mature and well-established ecosystem with numerous applications and active users.
- Global Blockchain Adoption: Full-scale adoption of blockchain technology in various industries, with Tezos playing a critical role.
- Sustained Innovation: Ongoing innovation and upgrades to the Tezos protocol, keeping it competitive and secure.
- Economic Stability: Stable economic conditions and growing acceptance of cryptocurrencies as a legitimate financial instrument.
Buying Guide
How to Buy Tezos (XTZ)
Buying Tezos
(XTZ) involves several steps, similar to acquiring other cryptocurrencies. Here’s a step-by-step guide:
- Choosing an Exchange: Tezos is available on several exchanges, including Binance, Coinbase, and Kraken. Select an exchange that best suits your needs in terms of fees, security, and user interface.
- Setting Up an Account: Once you’ve chosen an exchange, set up an account. This typically involves providing some personal information and going through a verification process.
- Selecting Payment Methods: After your account is set up and verified, link a payment method. Most exchanges accept bank transfers, credit cards, and sometimes even PayPal.
- Purchasing Tezos: Navigate to the exchange’s trading section, select XTZ, and enter the amount you wish to purchase. Confirm the transaction.
- Storing Tezos Securely: After purchasing Tezos, it’s essential to store it securely. While you can leave it in your exchange wallet, a more secure option is to transfer it to a private wallet, such as a hardware wallet, especially if you’re planning to hold it long-term.
How Can Crypto Investors Use Tezos (XTZ)?
There are several ways in which crypto investors can use Tezos:
- Buy and Hold: One option is to buy Tezos and hold onto it, hoping its value will increase over time. This can be a good strategy for investors who believe in Tezos’ long-term potential and want to accumulate as many tokens as possible.
- Trade: Another option is to trade Tezos on cryptocurrency exchanges, buying and selling the tokens as the price fluctuates. This can be a more active approach and requires more knowledge and understanding of the market.
- Use the Platform: Investors can also use the Tezos platform to perform tasks and earn Tezos tokens as payment. This can be an excellent way to “earn while you learn” and gain a deeper understanding of the platform while potentially earning additional tokens.
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Frequently Asked Questions
Does Tezos Have a Future?
Tezos has a promising future due to its unique features, such as on-chain governance, formal verification, and a robust LPoS consensus mechanism. Its ability to self-amend and upgrade without leading to a blockchain fork ensures continuous innovation and adaptation, making it a strong contender in the blockchain space.
Will Tezos (XTZ) Reach $8?
Based on current trends and technological advancements, Tezos has the potential to reach $8 by 2035. However, the price of any cryptocurrency is subject to market volatility and other external factors. While it is possible, investors should remain cautious and consider the inherent risks involved.
Is Tezos Secure?
Yes, Tezos is secure. It uses a liquid proof-of-stake (LPoS) consensus mechanism, which is designed to be more inclusive and democratic, ensuring a plurality of validators and enhancing network security. Additionally, Tezos’ focus on formal verification and on-chain governance adds extra layers of security and reliability.
Further Lookout
Tezos (XTZ) presents a compelling investment opportunity with its innovative features, robust security, and unique governance model. As the cryptocurrency market continues to evolve, Tezos stands out as a platform that prioritizes decentralization, security, and continuous improvement. However, the crypto market is notoriously volatile and unpredictable, so investors should stay informed and exercise caution.
With its promising future, Tezos could be a valuable addition to a diversified cryptocurrency portfolio, particularly for those who believe in its long-term potential and innovative approach to blockchain technology.
