XTZ: The Native Token Powering Tezos Blockchain and Its Decentralized Applications

XTZ: Everything You Need to Know

XTZ is the native token of Tezos, a blockchain platform that aims to support large-scale decentralized applications (dApps) with high performance, scalability, and usability. Tezos claims to offer the features of a real computer, such as operating system services, cloud storage, user authentication, and database management, on a distributed ledger. Tezos also seeks to eliminate the transaction fees and latency issues that plague other blockchain platforms.

What is XTZ?

XTZ is the utility token that enables users to interact with the Tezos network and its dApps. Users can transfer XTZ tokens to each other or use them to pay for dApp services. Users can also vote for block producers or propose changes to the network parameters using their XTZ tokens. Additionally, users can benefit from the inflationary nature of XTZ, as the total supply of XTZ increases by 5% annually, of which 4% goes to a worker proposal fund and 1% goes to block producers.

XTZ is designed to be a self-amending cryptocurrency that can evolve and improve over time without the need for hard forks. Hard forks are when a community splits into two incompatible versions of the blockchain, which can cause confusion, disruption, and loss of value. Tezos avoids hard forks by allowing its stakeholders to vote on proposals for protocol upgrades that have been put forward by Tezos developers. This way, Tezos can adopt new features and fix bugs without causing network disruption or fragmentation.

How does XTZ work?

XTZ works by providing a platform that facilitates the development and deployment of dApps on the blockchain. XTZ offers several features and services that make it attractive for dApp developers and users, such as:

Delegated Proof-of-Stake: Delegated Proof-of-Stake (DPoS) is a consensus mechanism that allows users to delegate their XTZ tokens to validators who secure the network and produce blocks. Validators are rewarded with newly minted XTZ tokens for their service, while delegators share a portion of their rewards. DPoS enables faster and cheaper transactions than other consensus mechanisms, such as Proof-of-Work or Proof-of-Stake.

Smart Contracts: Smart contracts are self-executing agreements that run on the blockchain and enforce the terms and conditions of a transaction. Tezos supports smart contracts written in various programming languages, such as Michelson, LIGO, SmartPy, or Archetype. Tezos also supports formal verification, a technique that allows developers to verify the correctness and security of their code before deploying it on the network.

Decentralized Applications: Decentralized applications (dApps) are applications that run on the blockchain and offer various services and functions to users. Tezos hosts hundreds of dApps across various domains, such as finance, gaming, art, social media, and more. Some examples of popular dApps on Tezos are:

Kolibri: Kolibri is a decentralized lending platform that allows users to borrow stablecoins pegged to the US dollar (kUSD) by locking up their XTZ tokens as collateral.

Hic et Nunc: Hic et Nunc is a decentralized marketplace for non-fungible tokens (NFTs), which are unique digital assets that represent art, music, collectibles, and more.

Kalamint: Kalamint is another decentralized marketplace for NFTs that focuses on supporting artists and creators from India and South Asia.

Plenty DeFi: Plenty DeFi is a decentralized finance (DeFi) platform that offers various products and services, such as yield farming, liquidity pools, synthetic assets, and more.

Who is the team behind XTZ?

XTZ is developed by Tezos Foundation, a non-profit organization based in Switzerland. The Tezos Foundation’s mission is to support the long-term development and growth of the Tezos network and ecosystem. The Tezos Foundation’s team consists of experts in various fields, such as engineering, research, governance, marketing, and community. Some of the key members of the Tezos Foundation are:

Hubertus Thonhauser: He is the chairman of the Tezos Foundation Council and an entrepreneur with experience in venture capital, gaming, and sports.

Alexis Bonte: He is a member of the Tezos Foundation Council and an entrepreneur with experience in gaming, media, and e-commerce.

Ulrich Sauter: He is a member of the Tezos Foundation Council and a lawyer with expertise in corporate law, finance law, and blockchain regulation.

Roman Schnider: He is the chief financial officer (CFO) of the Tezos Foundation and an auditor with experience in accounting, auditing, and blockchain.

Danny Masters: He is an advisor to the Tezos Foundation and an investor with experience in commodities trading, digital assets management, and blockchain.

What are the use cases of XTZ?

XTZ aims to provide a blockchain platform that can support various use cases across different domains, such as:

Decentralized Governance: XTZ enables users to participate in the governance of the Tezos network and its dApps by voting on proposals for protocol upgrades and network parameters. This way, XTZ empowers users to have a say in the direction and evolution of the platform.

Decentralized Finance: XTZ enables users to access various DeFi applications and protocols that offer financial products and services, such as lending, borrowing, trading, investing, saving, etc. Users can benefit from lower fees, higher efficiency, greater transparency, and more innovation compared to traditional finance.

Decentralized Art: XTZ enables users to create and trade NFTs that represent art, music, collectibles, and more. Users can benefit from more creativity, diversity, and ownership compared to centralized platforms.