What is This Cryptocurrency? Tezos
Tezos is a cryptocurrency similar to EOS or Ethereum in the sense that it aims to create a protocol that allows for the creation of decentralized apps and smart contracts. The Tezos coin does not only hold value, but it allows you to stake your coins and validate the transactions that occur on the block chain. The cryptocurrency allows for individuals to power the blockchain. While Tezos may be similar to EOS and Ethereum in some ways, it is very different in the way it works.
Tezos is another recent project that can be considered relatively new. Unlike Ethereum which was created around the same time as Bitcoin, Tezos attempts to fix some of the issues or bugs that have occurred to Ethereum. The crypto project was a response to the needs to improve scalability in previous projects. Networks tend to get congested when new projects attempt to create a new blockchain that will allow for applications, tokens, or other projects to be built on top of the already created block chain. Some cryptocurrencies have attempted to scale the amount of information on each blockchain but can be quite difficult.
Tezos wants to add decentralized applications to its network and allow individuals to create applications. These applications would be different from typical applications from say the Apple or Google Play section because they are not owned by one specific individual. Like Bitcoin, the applications are de centralized meaning no one individuals, company, or group owns the application. This allows for the application to work even if one individual choose to no longer participate in the application maintenance as there are usually groups of people who work on blockchains.
Individuals can stake their individual coins on the network. Since the network runs on a proof of stake protocol rather than a proof of work, individuals can use their coins to help run the network. Individuals can use their coins to give them the ability to vote on proposals and to make sure the transactions are counted correctly. The ability to gain rewards from helping the network also provides an incentive for keeping these coin.
While Tezos is not the only cryptocurrency that is creating a layered approach to adding a complete new way of looking at blockchain, it is a great project that has potential to include many needed components. While Bitcoin continues to be important for the storage of value and transactions, Tezos adds a new layer to the already impressive technology that exists.
*This does not constitute investment advice. If you are planning on investing or buying cryptocurrency, make sure to research information regarding each project.