Buy Tezos

Tezos is a blockchain that stands out for its ability to adapt. It offers users and developers an alternative to traditional blockchains like Bitcoin and Ethereum, which often struggle to handle changes and upgrades. This is where Tezos comes in. The platform is specifically designed to be upgradeable without hard forks, meaning that there will be no splits in the blockchain.

The XTZ token plays a crucial role in the Tezos ecosystem. It is a currency that allows users to pay for transactions and to “bake,” a process for processing transactions and earning rewards. Users who stake XTZ for baking are allowed to vote on changes and upgrades, making Tezos a decentralized and democratic project.

Who are the founders of Tezos?

Tezos was launched in 2017 and founded by Arthur and Kathleen Breitman, two individuals with extensive experience in the crypto space. Arthur, also known by the pseudonym L.M. Goodman, saw the need for a blockchain that could adapt and improve itself without the hassle of forks. The Breitmans founded Dynamic Ledger Solutions, which was later acquired by the Tezos Foundation. The foundation now manages the project and provides its legal and operational structure.

Tezos has several features and can be used for, among other things:

• Smart contracts: Tezos supports the development and execution of smart contracts, which is ideal for automated agreements without the need for a third party.
• dApp development: Developers can build decentralized applications (dApps) on Tezos, ranging from financial services to games.
• Baking: Users can stake XTZ tokens for baking, an alternative to staking and mining, which allows users to contribute to the processing of transactions and earn rewards.
• Decentralized governance: Bakers can vote on changes and upgrades, directly influencing the development and future of Tezos.

Tezos uses a modular architecture with three layers: network layer, transaction layer, and consensus layer. This modular design allows Tezos to update individual elements of the protocol without disrupting the entire system. This allows the network to quickly respond to changes and implement new technologies.

• Network layer: This layer handles communication between nodes in the Tezos network, including the transmission and propagation of transactions and blocks.
• Transaction layer: This is where transactions are processed. This layer also includes the Michelson smart contract language, which is designed for formal verification to ensure the security and correctness of code.
• Consensus layer: This is the layer where Tezos’ consensus mechanism, called Liquid Proof-of-Stake (LPoS), is implemented. LPoS differs from traditional Proof-of-Stake in that users have more flexibility in choosing validators (bakers) without having to permanently lock up their tokens.

Unlike many other blockchains, Tezos uses Liquid Proof-of-Stake (LPoS) to validate transactions and add new blocks to the blockchain. With LPoS, bakers must stake XTZ tokens to receive rewards in the form of newly created XTZ.

Baking and endorsing

On the Tezos blockchain, baking is the process of validating transactions and adding blocks to the blockchain. To become a baker, a user must stake 8,000 XTZ tokens. There are also endorsers, who verify blocks proposed by bakers. Both bakers and endorsers are rewarded with new XTZ tokens.

Tezos upgrades

Bakers can participate in the governance of the blockchain and vote on protocol changes and upgrades. The voting process consists of four different periods, each approximately 23 days long:

• Proposal period: In this phase, bakers can submit proposals for protocol changes. Each baker is entitled to one proposal per voting cycle, and the community can vote on which proposal will be considered further.
• Exploration Vote period: During this period, bakers vote on the selected proposal from the previous phase. A supermajority (80% of the votes) is required to move to the next phase.
• Testing period: In this phase, the new protocol is tested in a testnet environment. This allows the community to identify any issues before the protocol is implemented.
• Promotion Vote period: This is the final phase where bakers vote on the official implementation of the new protocol. If the proposal is approved by a supermajority, the new protocol will automatically be activated on the Tezos main network.

The XTZ token is the core of the Tezos network and has several functions. First, it acts as a means of payment within the Tezos ecosystem, with which users pay for their transactions. A portion of the transaction fees is distributed to bakers, who receive XTZ tokens as a reward for their contribution to the network.

Bakers use XTZ to participate in the baking process. They stake tokens to validate transactions and add new blocks to the blockchain, similar to staking. By staking XTZ for baking, users also gain governance rights. Bakers are allowed to propose changes and upgrades, and vote on other proposals. This gives Tezos a decentralized and democratic structure that encourages active community involvement.

Staking Tezos, also known as baking, involves users staking XTZ tokens to help validate transactions and add new blocks to the blockchain. In order to be able to bake, a user must hold at least 8,000 XTZ tokens.

For users who do not have this amount of tokens, there is the possibility to entrust their tokens to another baker. In this way, even smaller token holders can participate in the network and still earn rewards. Rewards are periodically distributed to both active bakers and those who have delegated their tokens.

Tezos distinguishes itself from other traditional blockchains through the following features:

• On-chain governance: Bakers can directly vote on protocol changes and upgrades. This results in a smooth and democratic upgrade process without the need for hard forks.
• Self-modification: The network can update itself without splitting, ensuring that the operation of the blockchain is not disrupted during an update.
• Liquid Proof-of-Stake: This consensus mechanism makes the network more energy-efficient and more accessible for token holders to participate in transaction processing and network governance.

You can buy Tezos (XTZ) at Bitvavo, a platform that is accessible to both beginners and advanced traders. Follow these steps to buy XTZ on our site or via the app:

1. Register or log in to your Bitvavo account.
2. Make a deposit by clicking "Deposit".
3. Visit the Tezos purchase page.
4. Enter the desired euro amount or the number of XTZ coins you wish to purchase and click "Buy".

The current price level determines how expensive the XTZ tokens are. After the transaction, the Tezos tokens are automatically added to your Bitvavo account, where you can easily manage and sell them. This makes it possible to respond quickly and effectively to market changes and price changes.

Tezos is stored safely in your Bitvavo account, where the majority of client funds are managed offline in cold wallets for maximum security. It is recommended to enable two-factor authentication (2FA) for additional account security.

If you prefer personal storage, most software and hardware wallets support Tezos. You can buy XTZ and transfer it to an external wallet by adding the corresponding address to your Bitvavo account.