Tezos (XTZ), launched in September 2018, is a decentralized, self-amending layer-1 blockchain designed for smart contracts and dApps, with a focus on long-term upgradability and governance. Using a Proof-of-Stake (PoS) consensus, Tezos enables seamless protocol upgrades without hard forks. Its native token, XTZ, powers transactions and governance.

Key Features

  • Self-Amending Protocol: On-chain governance allows upgrades without forks, with 20+ upgrades since launch (e.g., Paris in 2024).
  • Proof-of-Stake (PoS): Supports staking (baking) with ~8% annual rewards and ~70% of XTZ staked.
  • Scalability: Processes ~200 TPS with Layer-2 solutions like rollups, competing with Ethereum’s L2s.
  • Ecosystem: Trades on 150+ exchanges (e.g., Binance, Coinbase) and 250+ markets, with wallet support like Temple and Ledger.

XTZ Token

  • Purpose: Used for transaction fees, staking (baking), and voting on protocol upgrades.
  • Supply: ~1B XTZ in circulation, with no fixed maximum supply due to inflationary rewards.
  • Contract Address: Native to Tezos; CoinGecko CMC.

Who Are the Founders of XTZ?

Tezos was co-founded by Arthur Breitman and Kathleen Breitman in 2014. Backed by the Tezos Foundation, the project raised $232M in a 2017 ICO, one of the largest at the time. The Breitmans aimed to create a self-evolving blockchain, with the Foundation now supporting ecosystem growth.

What Makes XTZ Unique?

Tezos stands out in Web3:

  • Self-Amending Governance: Token holders vote on upgrades, avoiding contentious forks, unlike Bitcoin or Ethereum.
  • Energy Efficiency: PoS consumes ~0.0001% of Bitcoin’s energy, making it eco-friendly.
  • NFT and DeFi Hub: Hosts 500+ dApps, including Objkt (NFTs) and Plenty (DeFi), with ~$50M TVL.
  • Formal Verification: Smart contracts use Michelson language for mathematical proofs, enhancing security for critical applications.

XTZ Network Upgrades (2025)

  • Paris B (Q1 2025): Reduced block times to 10 seconds, boosting TPS by 20%.
  • Data Availability Layer (March 2025): Enhanced rollup support for scalability, processing 1M+ transactions daily.
  • Smart Rollups V2 (June 2025): Improved L2 efficiency, lowering costs by 30% for dApp developers.

How Is XTZ Secured?

Tezos and XTZ are secured through:

  • Proof-of-Stake (PoS): Bakers stake XTZ to validate blocks, with ~700M XTZ staked securing the network.
  • Smart Contract Audits: Formal verification and audits by firms like Nomadic Labs ensure code integrity.
  • On-Chain Governance: XTZ holders vote on upgrades, ensuring decentralized control.
  • Slashing Mechanism: Penalizes malicious bakers, aligning incentives for honest participation.

Conclusion

Tezos (XTZ) is a self-evolving blockchain, prioritizing governance, scalability, and sustainability. With a 1B circulating supply, and 150+ exchange listings, Tezos supports a vibrant ecosystem of NFTs, DeFi, and dApps. Its energy-efficient PoS, formal verification, and 2025 upgrades like Paris B position it as a resilient Web3 platform, though it faces competition from newer layer-1s.