Tezos (XTZ) has only been on the market since 2018 – and is experiencing enormous hype. The relatively young cryptocurrency is particularly popular for security reasons. But where does the currency actually come from?
–
• The initial coin offering went well, then there were delays and litigation
• Tezos Smart Contracts are considered to be particularly secure, hard forks are avoided
• Tezos ousted Ethereum at South America’s largest bank
Tezos is a blockchain company that trades in XTZ tokens and focuses on working with smart contracts. Founded in 2017 by former Morgan Stanley analyst Arthur Breitman and his wife Kathleen Breitman, the company primarily advertises with certainty that it wants to offer with the help of special technology.
Delay in product launch and class action lawsuit
The Initial Coin Offering (ICO) of the Tezos digital currency of the same name was initially a great success: It started on July 1, 2017 and became the second largest ICO in history – Tezos earned BTC and Ethereum with a value of $ 232 million. Only Filecon’s ICO was larger, worth a total of $ 257 million.
Then there were difficulties with the then president of the foundation of the company “Dynamic Ledger Solutions”, which was founded by the Breitmans to develop the source code of the blockchain. The foundation and the company are located in Switzerland; it has been contractually agreed that the foundation will buy the finished source code from the company. Johann Gevers (President of the Foundation), according to media reports, refused to resign after an internal dispute and also blocked the Foundation’s financial resources.
For this reason, the currency could not be developed efficiently and a delay in the product launch was the result – Gevers finally resigned. At the same time, there was a class action lawsuit against the Breitmans, accused of trading in unregistered securities.
The Tezos technology: Baker instead of miner
At Tezos, “Baker” produce a block with a minimum stake of 10,000 XTZ. The so-called “baking” system is similar to that of the miner, but is more secure, according to the Tezos website. The decentralized organization of the blockchain apparently also works well – hard forks are avoided: the first governance update “Athens” has already been successfully adopted. By avoiding hard forks, according to Tezos, large interest groups should be served as long as possible.
Unlike other cryptocurrencies, the smart contracts are checked using a mathematical process. A proof-of-stake is carried out – errors should be almost completely excluded. The process is designed to prevent the individual from pretending to be many in the automatic reconciliation mechanism that replaces the accountant by checking the stakes instead of (as with BTC) computing power.
What’s next for Tezos – is it all just hype?
Tezos has competition: Among other things, the cryptocurrency Ethereum. At BTC Pactual, the largest bank in South America, only Tezos security tokens have been issued since 2019 – previously the bank relied on Ethereum for security token offerings (STO). Of course, this does not mean that Tezos has already knocked out all the competition. But: Tezos’ market capitalization ensures the cryptocurrency a place among the ten largest digital tokens.
On his website, Tezos explains that in the future privacy, which also includes data protection, consensus, scalability, smart contracts and the principles of blockchain should be improved. These issues can be expected to grow in importance in the future – so Tezos may not have a bad chance of continuing to defend its position among the top 10 cryptocurrencies.
Editorial office finanzen.at
– .
