Tezos (XTZ) Complete Guide - Self-Evolving Blockchain That Even Beginners Can Easily Understand
Hello! Recently, as interest in blockchain and cryptocurrency has increased, more and more people have been curious about Tezos (XTZ). Tezos is not just a simple cryptocurrency, but a next-generation blockchain platform based on innovative technology.
Don't worry if you're new to cryptocurrency investment. Today, I'll explain everything in detail and easily, from what Tezos is, what makes it special, and how it's actually being used. I'll explain the complicated technical terms as easily as possible, so please read it comfortably!
Introducing Tezos (XTZ) - The Birth of a Self-Evolving Blockchain
Tezos is an innovative blockchain project that started in 2014 and took a completely different approach from existing blockchains. Its biggest feature is its 'self-amendment' function, which means that it can evolve and develop on its own, just like a living organism.
In general blockchains, you have to go through a complicated process called a hard fork to upgrade. However, Tezos upgrades naturally through voting by network participants. This allows developers to add new features faster and more safely.
💡 Good to know: The name Tezos comes from the Greek word 'Tezein', which means 'measure' or 'prove'. This name is a good example of the verifiable blockchain technology that Tezos pursues.
The History of Tezos - From Vision to Reality
Tezos' journey began in 2014 by Arthur and Kathleen Breitman. They came up with the innovative idea of a 'self-evolving blockchain' to overcome the limitations of existing blockchains.
In July 2017, Tezos successfully completed its ICO (Initial Coin Offering), which was the largest in history at the time, raising $230 million. However, it initially suffered from internal disputes and legal issues. Fortunately, it has entered a full-fledged growth trajectory since the betanet launch in 2018.
Tezos currently has an active developer community around the world and is providing practical blockchain solutions by forming partnerships with various companies. It is particularly prominent in the NFT and DeFi fields.
How Tezos Works - Innovation in On-Chain Governance
The core of Tezos is the 'On-Chain Governance' system. This is a system in which decisions are made within the blockchain network itself, and it operates on the same principle as democratic voting.
Network participants have voting rights as much as they hold XTZ tokens, and can directly vote on protocol changes. Voting is conducted in four stages: Proposal → Exploration → Testing → Promotion, and once finally approved, it is automatically applied to the network.
🔍 Features of Tezos Smart Contracts:
Tezos writes smart contracts in a unique language called 'Michelson'. This language is designed to allow mathematical proof, which can guarantee the safety and accuracy of the contract. In addition, gas costs are considerably cheaper than other blockchains, making it popular among developers.
Diverse Use Cases of Tezos - From Theory to Practice
Tezos has various real-world use cases. In the financial services sector, stable coins, lending platforms, and exchanges are operated based on the Tezos network. In particular, the French bank Société Générale has issued digital bonds using Tezos.
Tezos is also attracting attention in the fields of art and culture. With NFT marketplaces such as 'Hic et Nunc' and 'objkt.com' operating on the basis of Tezos, many artists are issuing and trading NFTs at low costs. Thanks to the much lower transaction fees compared to Ethereum, even small-scale creators can easily access them.
Tezos is also being utilized more in the gaming sector. Blockchain games are using the Tezos network to issue in-game items as NFTs and support transactions between players. Fast transaction speeds and low fees are greatly improving the gaming experience.
Tezos Exchange - Safe and Convenient Trading Method
Tezos can be traded on major cryptocurrency exchanges around the world. In Korea, direct KRW trading is possible on Upbit, Bithumb, and Coinone, and overseas exchanges such as Binance, Coinbase, and Kraken are actively traded.
There are several important factors to consider when choosing an exchange. The first is security. It is important to choose an exchange with no history of hacking and a clear policy on asset storage. The second is transaction fees. If you plan to invest in the long term, an exchange with low fees is advantageous.
💰 Exchange Usage Tips: When trading in large quantities, you can trade at a better price by using the OTC (over-the-counter) service. Also, regularly purchasing small amounts using the dollar-cost averaging strategy is a good way to reduce volatility risk.
Tezos Community - An Ecosystem That Grows Together
Tezos boasts an active community around the world. The official forum, 'Tezos Agora', discusses a variety of topics from technical discussions to governance proposals. The 'Tezos Developers' community for developers actively provides technical support and collaboration.
The Tezos community is also very active on social media. They share information and communicate in real time on Twitter, Telegram, Discord, Reddit, etc. In particular, the Korean community is also growing steadily, so you can easily find various information and analysis materials in Korean.
Regularly held conferences such as 'TezDev' and 'Tezos Commons' share the latest development status and future roadmap. Since you can participate online, you can check the development progress of Tezos in real time from anywhere in the world.
Tezos Wallet - The Key to Safe Asset Storage
Choosing the right wallet is essential to safely store Tezos. There are Tezos-specific wallets such as 'Temple Wallet', 'Kukai', and 'Galleon', and each has its own unique advantages.
Temple Wallet is a browser extension that is convenient to use and easy to link with dApps (decentralized applications). Kukai is a web-based wallet that can be used without separate installation and provides an intuitive interface that even beginners can use easily.
If you plan to store a large amount of Tezos for a long period of time, we strongly recommend using a hardware wallet. Hardware wallets such as Ledger Nano S/X and Trezor support Tezos, and offline storage can completely block the risk of hacking.
🔐 Wallet security tips:
• Never store your private keys and seed phrases online
• Create multiple backups and store them in a safe place
• Update your wallet software regularly
• Beware of phishing sites and always check the official URL
Tezos Staking - Earn money just by holding
Another attractive feature of Tezos is 'Baking'. This is a similar concept to staking in other blockchains, and you can earn about 5-6% per year just by holding Tezos.
There are two ways to participate in baking. You can become a baker yourself or delegate to an existing baker. To do direct baking, you need at least 8,000 XTZ and you need to run a 24-hour server, but in the case of delegation, anyone can participate without a minimum amount.
The advantage of delegated baking is that you can earn income without moving Tezos from your wallet. You can cancel the delegation at any time, and you can freely trade or transfer, so you can create passive income without liquidity loss.
Things to keep in mind when investing in Tezos - A guide for smart investment
⚠️ Things you must know before investing:
If you are considering investing in Tezos, carefully review the following:
First, you need to fully understand the high volatility of the cryptocurrency market. Tezos is also greatly affected by Bitcoin and the entire cryptocurrency market, so there may be large price fluctuations in a short period of time. Therefore, it is safe to limit the investment amount to 5-10% of total assets.
Second, it is important to continuously monitor Tezos' technical development and roadmap. Check if regular upgrades are being carried out and if new partnerships or use cases are being added. This information is an important indicator for long-term value evaluation.
Third, you should carefully watch the changes in the regulatory environment. The cryptocurrency regulatory policies of each government can directly affect the price of Tezos. In particular, it is important to understand the regulatory trends in major markets such as the United States, Europe, and Asia.
Lastly, clarify the investment purpose and period. If the purpose is short-term trading, technical analysis and understanding of market trends are important, and if it is a long-term investment, you should focus more on Tezos' technical superiority and ecosystem development potential.
Tezos' Future Outlook - A Leader in Blockchain Innovation
Tezos is establishing a unique position in the blockchain industry through continuous technological innovation and expansion of practical use cases. In particular, the eco-friendly consensus mechanism and democratic governance structure that are in line with the ESG (Environment, Social, and Governance) trend are attracting the attention of institutional investors.
According to the recently announced roadmap, Tezos is focusing on improving scalability, improving developer experience, and strengthening interoperability. In particular, the introduction of the 'Tenderbake' consensus algorithm is expected to significantly improve transaction processing speed, and Layer 2 solution development is also actively underway.
Positive signals are also continuously emerging in terms of corporate adoption. Traditional financial institutions are increasingly using Tezos, and government agencies are increasingly considering Tezos as a blockchain solution.
🚀 Tezos' core competitiveness:
• Self-modifiable protocol that allows continuous evolution
• Democratic and transparent on-chain governance
• Eco-friendly with low energy consumption
• Mathematically provable smart contracts
• Active developer community and ecosystem
Tezos is evolving beyond a simple investment target into a platform for the democratization of blockchain technology and real-life applications. We hope that you will also watch Tezos' technological innovation and community activities and think about the future of blockchain together.
Always approach investments carefully and make decisions based on sufficient research and understanding. We hope that Tezos will be a new opportunity for you, and let's continue to watch the exciting developments in the blockchain world together! 🌟