Whether you’re a developer, investor, or simply blockchain-curious, this guide offers valuable insights into the Tezos ecosystem, its future potential, and how it’s shaping the decentralized digital world.
Tezos, first proposed in 2014, is an open-source platform for assets and applications, including the creation of smart contracts and decentralized applications (dApps). Its native cryptocurrency is XTZ. Unique for its self-amending feature, Tezos can upgrade its protocol over time through a formalized process. This, especially, is a feature not common in many blockchains.
At its core, Tezos is a smart contract platform, allowing developers to build decentralized applications (dApps) on its blockchain. This functionality is similar to Ethereum but with a few key differences. Tezos’ smart contracts are written in Michelson, a language designed to facilitate formal verification. This is also a technique used to improve the security of smart contracts by mathematically proving their correctness. This emphasis on security also makes Tezos a robust platform for developers who want to build reliable and secure dApps.
Tezos’ native cryptocurrency, XTZ, also known as “Tez,” plays a central role in maintaining and operating the Tezos ecosystem. XTZ is used not only as a digital currency but also for staking in the network’s consensus mechanism. By “baking” their Tez, holders can participate in the governance process, proposing or voting on amendments. This staking mechanism also serves to secure the network and validate transactions, aligning the incentives of various stakeholders within the Tezos ecosystem.
What makes Tezos particularly interesting is its commitment to continuous improvement and innovation. The blockchain is designed to incorporate new technological advancements, ensuring that it remains at the forefront of the blockchain space. This forward-thinking approach has also attracted a diverse range of developers, from those creating financial applications to artists minting NFTs, contributing to a rich and evolving ecosystem.
The primary smart contract standard for Tezos is FA1.2 and the more advanced FA2.
FA1.2 is a token standard on Tezos, analogous to Ethereum’s ERC-20. It’s designed for fungible tokens, which means each token is identical and interchangeable. This standard outlines a basic interface for managing fungible tokens, including transferring tokens, approving tokens for use by another account, and allowing users to check the token balance of an account. Simpler token-based applications generally use FA1.2.
FA2 is a more flexible and powerful token standard on Tezos. It is akin to Ethereum’s ERC-1155, offering a multi-asset interface. This means it supports a wide range of token types and features within a single contract. This also includes fungible, non-fungible (NFTs), and semi-fungible tokens. The FA2 standard allows for:
FA2’s flexibility makes it particularly well-suited for complex applications requiring various token types, such as NFT platforms or games with multiple in-game assets. It has become the go-to standard for many developers building on Tezos, particularly for projects involving NFTs due to its ability to handle unique digital assets effectively.
TL;DR:
Imagine you have a box of regular, same-sized LEGO bricks (these are like FA1.2) – they’re all the same and you can build simple things with them. But what if you also have a box with different kinds of LEGO pieces, like windows, wheels, and even rare pieces (this is like FA2)? With this second box, you can build much more interesting and varied things, like cars, houses, or even a spaceship.
In Tezos, FA1.2 is like the first box – good for simple stuff. But FA2 is like the second box – it lets you do a lot more and create all sorts of cool and unique things!
Tezos stands apart from other blockchain platforms with its unique governance model. Unlike many blockchains that suffer from hard forks due to disagreements in upgrades, Tezos avoids this through its self-amending feature. This allows stakeholders to vote on amendments to the protocol, including upgrades to the system itself, without needing to fork the network. This democratic governance system also ensures that the blockchain evolves in response to its community’s needs, making it more adaptable and sustainable in the long run.
Buying and selling NFTs on Tezos involves a few essential steps:
Minting NFTs on Tezos is a process that transforms digital assets into non-fungible tokens (NFTs) on the blockchain. This process is key for artists and creators who want to tokenize their digital art, music, videos, or other forms of creative work. Here’s a more detailed breakdown of the minting process on Tezos:
By following these steps, creators can effectively mint their digital assets as NFTs on the Tezos blockchain, leveraging its low transaction costs and eco-friendly approach. This process not only secures the digital asset on the blockchain but also opens up potential revenue streams through sales and royalties.
1. Temple Wallet
2. Kukai Wallet
3. Galleon Wallet
1. Objkt.com
2. Teia
3. Kalamint
Tezos, after a challenging 2022, has shown signs of recovery in 2023, bolstered by increased activity in decentralized finance (DeFi) solutions on its network. Moreover, the blockchain has rolled out numerous updates, enhancing its capabilities in handling off-chain transactions, maintaining an active NFT domain, and expanding its DeFi arena. These innovations aim to enhance speed and efficiency, reflecting Tezos’s commitment to continual growth. However, the platform faces challenges, including struggles to attract new users and a reduction in revenue due to declining gas charges, amidst broader regulatory changes in the cryptocurrency landscape.
The price of XTZ, after a significant drop, indicates a potential for gradual recovery, with predictions suggesting a mellow growth. Despite the setbacks, Tezos’s unique ability to evolve without splitting and its self-evolving blockchain architecture, which eliminates the need for hard forks, offers a theoretical stability that might attract future investments. This resilience and adaptability, coupled with its capability to efficiently handle high traffic and scalability, position Tezos as a potentially significant player in the blockchain world, with diverse utility cases extending beyond basic transactions
