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Over the weekend I began learning about Tezos. I thought I might as well share what I am reading and learning as I go, in case it should be helpful to others with similar interests.
Site Administrator Swing Trader Data Scientist & DevOps
Manta, Ecuador
Experience: Advanced
Platform: Custom solution
Trading: Futures & Crypto
Posts: 50,088 since Jun 2009
Thanks: 32,548 given,
98,546
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Let me first try to describe what Tezos is. I am going to share a few descriptions I have encountered so far:
From r/tezos:
Tezos is a decentralized blockchain that governs itself by establishing a true digital commonwealth. It facilitates formal verification, a technique which mathematically proves the correctness of the code governing transactions and boosts the security of the most sensitive or financially weighted smart contracts.
From tezos agora:
Tezos is a self-amending blockchain software which uses an on-chain process to propose, select, test, and activate protocol upgrades without the need to hard fork. In practice, this enables Tezos to improve itself over time via a structured, yet decentralized process while preserving a high level of consensus.
Tezos also allows stakeholders to upgrade the amendment process itself. As a result, details of the mechanism described below represent the current mechanism and are subject to change. This page will evolve as the network evolves.
From tezos.com:
Tezos is an open-source platform for assets and applications that can evolve by upgrading itself. Stakeholders govern upgrades to the core protocol, including upgrades to the amendment process itself.
Self-Amendment
Self-amendment allows Tezos to upgrade itself without having to split (“fork”) the network into two different blockchains. This is important as the suggestion or expectation of a fork can divide the community, alter stakeholder incentives, and disrupt the network effects that are formed over time. Because of self-amendment, coordination and execution costs for protocol upgrades are reduced and future innovations can be seamlessly implemented.
On-Chain Governance
In Tezos, all stakeholders can participate in governing the protocol. The election cycle provides a formal and systematic procedure for stakeholders to reach agreement on proposed protocol amendments. By combining this on-chain mechanism with self-amendment, Tezos can change this initial election process to adopt better governance mechanisms when they are discovered.
Decentralized Innovation
Proposed amendments that are accepted by stakeholders can include payment to individuals or groups that improve the protocol. This funding mechanism encourages robust participation and decentralizes the maintenance of the network. Fostering an active, open, and diverse developer ecosystem that is incentivized to contribute to the protocol will facilitate Tezos development and adoption.
Smart Contracts & Formal Verification
Tezos offers a platform to create smart contracts and build decentralized applications that cannot be censored or shut-down by third parties. Furthermore, Tezos facilitates formal verification, a technique used to improve security by mathematically proving properties about programs such as smart contracts. This technique, if used properly, can help avoid costly bugs and the contentious debates that follow.
Proof-of-Stake (PoS)
Participants (“nodes”) in decentralized, peer-to-peer networks provide the necessary computational resources that keep a network up and running. Proof-of-Stake (PoS) is the mechanism by which the various participants in Tezos reach consensus on the state of the blockchain. Unlike other PoS protocols, any stakeholder can participate in the consensus process in Tezos and be rewarded by the protocol itself for contributing to the security and stability of the network. Additionally, PoS is less costly than other consensus mechanisms and lowers the barriers to entry for involvement.
Delegation
In PoS, a security deposit is required to participate in the consensus process and avoid being diluted by inflation. As in proof-of-work, the consensus protocol relies on an honest majority for its security which is incentivized directly by the Tezos protocol by penalizing dishonest behavior and rewarding honest behavior. If a participant behaves dishonestly, they can lose their deposit. Users who do not wish to participate directly in the consensus protocol have the option to delegate their rights to other users to participate on their behalf.
With recent talk about cryptocurrencies, I wanted to push myself to create this thread and try to share some things that I've learned so far about cryptocurrencies.
I intend to share a lot in the thread. Please "follow" to …
Going to try to share what I've learned, and increase awareness here.
Just learning about it. Probably a little late to the party. Made my first Litecoin trade yesterday on Tastyworks since they were running a promotion. I'd be all ears to learn more.
The following 2 users say Thank You to TheShrike for this post:
The $USDS stablecoin supports gas relaying, i.e. the ability for users to also pay their transaction fees in $USDS instead of $XTZ, unlike most stablecoins which would make you pay (expensive) gas/fees in $ETH or another native coin.
Howdy, all
If U are in the US? What platform do U use/suggest one starts with for trading cryptos?
There are so many, just looking for some insight from existing crypto traders.
TIA
The following user says Thank You to learning0101 for this post:
What do you think of circulating supply? Isn't 759.7 million is huge? I know it's not huge when you compare it to DOGE's 128.3 billion (Can't believe MUSK is pumping DOGE).
Am I missing anything on circulating supply, basic supply and demand laws doesn't matter I guess...
Disclaimer: I am HODLer of both TEZO and DOGE.
Thanks
The following 2 users say Thank You to bmtrading9 for this post:
I think Tezos is good for hodlers. While Tezos based NFT platforms like "hic et nunc" and "opensea" grow, the demand for XTZ will likely grow and the price of XTZ might increase substantial. In the meantime earn a nice revenue through delegating.
Site Administrator Swing Trader Data Scientist & DevOps
Manta, Ecuador
Experience: Advanced
Platform: Custom solution
Trading: Futures & Crypto
Posts: 50,088 since Jun 2009
Thanks: 32,548 given,
98,546
received
Sorry I haven't been posting about crypto much, due to the data center fire taking my time.
Just a quick note to drop by and say that I actually really believe in Tezos, and it is now overweighted in my long-term hold portfolio. I want to hold this for a few years if it does move as I expect it to. No need to talk price target predictions, but you can do your own valuation estimates looking at other DeFi's.
I'll also just leave this here, because I found it to resonate with me:
