Tezos (XTZ)

Smart Contracts and Decentralized Applications

Tezos is a platform where developers can create smart contracts and build decentralized applications (dApps) that run without censorship or shutdown by third parties.

Governance and Upgrades

Tezos has a unique on-chain governance system that allows users to vote on protocol upgrades, making the platform self-upgradable and adaptable over time.

Staking and Network Security

The native token, Tez (XTZ), is used for staking to help secure the network. Users can participate directly or delegate their staking rights to others.

Asset Tokenization and Digital Ownership

Tezos supports tokenization of assets, enabling digital ownership and transfer of various types of assets on the blockchain.

Energy Efficiency and Sustainability

Tezos uses a Proof-of-Stake consensus mechanism, which is energy-efficient compared to traditional Proof-of-Work blockchains, making it a sustainable choice for developers and users.

Layer 2 and Scalability

Tezos supports layer 2 solutions to increase scalability and improve transaction speed while maintaining security and decentralization.

Use in Various Industries

Tezos is used in decentralized finance (DeFi), gaming, digital art (NFTs), enterprise solutions, and more, providing a broad range of applications across different sectors.

Pros of Tezos

• Self-Amending Blockchain: Tezos can upgrade itself without needing to split into two blockchains, which helps it evolve smoothly.
• Proof-of-Stake Consensus: Uses less energy and is more cost-effective compared to Proof-of-Work blockchains.
• Smart Contract Security: Supports formal verification, which helps prevent bugs in smart contracts.
• Decentralized Governance: Token holders can vote on protocol upgrades, making the system democratic.
• Growing Adoption: Increasing use in decentralized finance (DeFi) and NFTs, with active development and community support.
• Scalability: Designed to handle more transactions efficiently as it grows.

Cons of Tezos

• Slow Adoption: Not as well-known or widely used as Bitcoin or Ethereum, leading to slower growth.
• Governance Challenges: Sometimes decision-making and upgrades can be slow due to community voting.
• Past Internal Conflicts: Early issues with the Tezos Foundation caused delays in token distribution and development.
• Limited Commercial Support: Fewer major projects and exchanges support Tezos compared to bigger blockchains.
• Low Visibility: Less marketing and community presence compared to other cryptocurrencies.
• Potential Centralization: Proof-of-Stake can lead to power concentration if a few holders control many tokens.

Founders

Tezos was founded by Arthur Breitman and Kathleen Breitman.

Background

Arthur Breitman is a former engineer at Google X and Waymo, and Kathleen Breitman worked at Bridgewater Associates and R3. They started working on Tezos in 2014 and officially launched it in 2018.

Company

They also founded a startup called Dynamic Ledger Solutions, which developed the Tezos protocol code.

Major Investors

Tezos was initially funded through a 2017 ICO (Initial Coin Offering) that raised about $232 million from a wide range of investors. Some well-known institutional investors include Polychain Capital and Andreessen Horowitz’s crypto-focused fund.

Institutional Support

Coinbase Custody offers staking services for institutional investors holding Tezos, allowing them to earn passive income by participating in the network’s proof-of-stake system.

Foundation and Founders

The Tezos Foundation, a nonprofit based in Switzerland, manages funds and supports the project’s growth. The co-founders, Arthur and Kathleen Breitman, were also early key investors and developers.

Legal and Settlement Background

Investors who participated in the ICO were involved in a $25 million settlement related to legal disputes over the ICO’s regulatory status. The Tezos Foundation paid this settlement.

For more details, visit the official Tezos website.

Halal Status of Tezos

Yes, Tezos is considered halal. It has received Shariah certification after a detailed review of its governance, Proof-of-Stake consensus mechanism, and transaction validation process. Its self-amending blockchain and use in halal applications like tokenized sukuk support its compliance with Islamic principles.