Tezos Price

What Is Tezos?

First launched in June 2018, Tezos (XTZ) is the world’s first self-amending smart contract blockchain protocol. Powered by a novel liquid proof of stake (LPoS) consensus algorithm, Tezos supports smart contracts and decentralized applications (DApps), which can operate in a censorship-free environment, with enhanced security and upgradability. 

The native cryptocurrency of the Tezos network is known as tez or XTZ. 

What Is XTZ?

Tezos’ native token is XTZ, which is used to pay fees for transactions on the network. XTZ is also rewarded to the actors participating in securing the blockchain — bakers, endorsers and accusers. In Tezos’ unique LPoS consensus mechanism, delegators also get to earn a portion of the rewards as passive income.

Like Ethereum, Tezos token has no maximum supply. XTZ price reached above $8 in October 2021, though it’s since declined to around $1.50.

Who Is the Founder of Tezos? 

The history of how Tezos came to life goes back to 2014, when Arthur Breitman first published a white paper on the concept of self-amending crypto ledgers. However, it wasn’t until 2017 that the Tezos Foundation was established in Zug, Switzerland, by Authur Breitman and his wife, Kathleen Breitman. The foundation’s purpose is to promote the adoption and development of the Tezos protocol.

In the early days, Tezos faced multiple delays in launching its mainnet. This led to investor unrest, with some going as far as filing class-action lawsuits against the Tezos Foundation. However, the Tezos Foundation eventually managed to launch the Tezos mainnet on June 30, 2018.

How Does Tezos Work?

The Tezos protocol uses an on-chain governance model that provides for the evolution of the protocol over time. This governance model allows the Tezos protocol to be upgraded without the need for hard forks.

Its PoS consensus algorithm means that token holders can participate in the consensus process by staking their XTZ tokens. Unlike the original PoS consensus mechanism, Tezos allows for delegation of staking, which dilutes the mining activity. Delegation is also optional, whereas in delegated proof of stake (DPoS), delegation is mandatory. For this reason, the Tezos consensus protocol has come to be known as liquid proof of stake (LPoS).

Tezos protocol’s concept of “baking” is similar to staking in other PoS protocols. Bakers are responsible for validating new blocks on the chain and are rewarded with XTZ tokens for their contributions. Besides bakers, two other actors participate in the protocol to secure the network for XTZ rewards: Endorsers and accusers. Endorsers are responsible for validating blocks. Accusers serve to monitor all block activities.

To become a baker, you first need to have a minimum of 6,000 XTZ tokens (1 roll). The more rolls a baker has, the higher the chances they’ll be given the rights to bake the next block, and thus earn more rewards. The Tezos protocol also lets users with fewer than 6,000 XTZ tokens to delegate their tokens to a baker. The delegator can then earn a portion of the baker’s rewards as passive income.

Tezos' delegation model doesn't have any lock-in period. As a result, token holders can delegate their tokens to multiple bakers — and can even change the baker(s) they’re delegated to at any time.

What Is XTZ Used For?

The XTZ token is the native cryptocurrency of the Tezos protocol. Its main use case is to participate in the LPoS consensus process of the Tezos protocol. Since Tezos is a self-amending blockchain, XTZ is also used for on-chain governance voting for chain upgrades. As the main party in securing the network, bakers also serve as voters for the Tezos upgrade process, with the importance of their votes allocated according to the size of their stakes.

With around 90 decentralized apps (DApps) in the Tezos network, The XTZ token is also used to pay transaction fees for using the DApps, which range from decentralized exchanges (DEXs) to NFT (non-fungible token) marketplaces. 

Why Is XTZ Valuable?

PoS Consensus Mechanism

The XTZ token is valuable because it allows users to participate in the Tezos protocol’s LPoS consensus process. Using this consensus algorithm means that even more token holders can contribute to the network by delegating their XTZ tokens.

On-Chain Governance

The XTZ token is also valuable because it gives users a say in the governance of the Tezos protocol. Tezos’ on-chain, evolutionary governance model lets token holders participate in the governance of the protocol by voting on proposals that are submitted by the Tezos Foundation.

Green Cryptocurrency

Tezos’ flexible design allows it to adapt to current and future needs, with a reported increase in energy efficiency of up to 70% per transaction in 2021. The low carbon footprint of Tezos blockchain makes XTZ increasingly valuable as the crypto space gets criticized by the progressively environmentally conscious global community for its intensive energy usage. 

What Makes Tezos Unique?

Self-Evolving

One of the things that make Tezos unique is its self-evolving nature. This means that the protocol can be upgraded without contentious splits that often occur with other cryptocurrency protocols.

LPoS Consensus Mechanism

The LPoS consensus algorithm is an improvement on existing PoS and DPoS consensus protocols, which fosters more inclusivity and promotes democracy within the network. The delegation mechanism in the LPoS protocol means that users can delegate their tokens to a baker. Moreover, their delegated stake is never locked.

Formal Verification

Another thing that sets Tezos apart is its use of formal verification, a mathematical process that verifies software programs. The Tezos protocol uses formal verification to mathematically prove that the code of the protocol is correct. This means that there’s a reduced chance of errors in the code, which can lead to security vulnerabilities.

How Many XTZ Are in Circulation?

As of the time of writing (July 25, 2022), there are 902,733,895 XTZ in circulation, with a total supply of 924,283,376 XTZ. There remains no max supply cap for its tokens.

The initial coin offering (ICO) for Tezos was launched in 2017 and became a record-breaking success when it raised $232 million. The genesis block started in June 2018 with a circulating supply of around 608 million XTZ.

How to Store XTZ

The XTZ token is stored on the Tezos protocol and can be accessed through a Tezos wallet. The most popular Tezos wallet is the official Tezos Wallet, Kukai, which is available for desktop and mobile devices. Other popular Tezos wallets include Trust Wallet, Atomic Wallet and Ledger Nano S.

How to Buy XTZ

You can buy XTZ from any top crypto exchange, including Bybit.

How to Buy XTZ on Bybit

To purchase XTZ on the Bybit exchange, follow these simple steps:

1. Head to Bybit’s spot trading page (Home → Trade → Spot Trading).

2. Select the XTZ/USDT pair on the left side of the page.

3. Choose the type of order you’d like: Limit Order, Market Order or Conditional Order.

For Limit Orders:

1. Select Limit.

2. Enter the order price.

3. Enter the number of XTZ you wish to buy.

4. Click on Buy XTZ.

5. Once you’ve confirmed your information is correct, click on Buy XTZ.

6. View your order details under Active on the web page, or Orders if you’re using the Bybit app.

For Market Orders:

1. Select Market.

2. Enter the amount of USDT you’ve paid to buy XTZ.

3. Click on Buy XTZ.

4. Once you’ve confirmed your information is correct, click on Buy XTZ.

5. View your order details under Filled.

For Conditional Orders:

1. Select Conditional.

2. Enter the trigger price.

3. Choose to execute at Market Price or Limit Price.

   1. Market Price: Order price doesn’t need to be set.

   2. Limit Price: Order price needs to be set.

4. According to order types:

   1. Market Buy: Enter the amount of USDT you’ve paid to buy XTZ.

   2. Limit Buy: Enter the number of XTZ you want to buy.

5. Click on Buy XTZ.

6. Once you’ve confirmed your information is correct, click on Buy XTZ.

7. View your order details under Conditional on the web page, or All Orders → Current Orders on the Bybit app.

For more help, visit the Bybit spot trading guide.