What is Tezos (XTZ)?

Deep Dive

1. Governance Revolution

Tezos pioneered on-chain governance where stakeholders ("bakers") propose and vote on protocol upgrades through four phases: proposal submission, exploration voting, testnet deployment, and promotion voting. Approved upgrades automatically deploy network-wide within weeks without hard forks – a key innovation preventing chain splits like Bitcoin/Bitcoin Cash. This creates institutional-grade stability while enabling continuous technical evolution.

2. Security-First Architecture

The blockchain uses Liquid Proof-of-Stake where token holders delegate or stake XTZ to "bakers" (validators) who produce blocks. Bakers must stake 8,000 XTZ ("1 roll") to participate, balancing decentralization with accountability. Unique formal verification capabilities allow developers to mathematically prove smart contract correctness before deployment – critical for high-value DeFi and RWA applications where bugs could cause catastrophic losses.

3. Evolving Utility

Tezos supports assets and dApps across NFTs, DeFi, and real-world assets (RWAs), with recent upgrades enabling Ethereum compatibility via Etherlink L2. Its energy-efficient design (2M× more efficient than Bitcoin) and support for mainstream languages (Python/JavaScript) lower developer barriers. The ecosystem focuses on high-security use cases like Société Générale's digital bonds and Uranium.io's tokenized commodities.

Conclusion

Tezos fundamentally provides a governance-first, security-optimized foundation for institutional blockchain adoption. How will its self-amending capability accelerate real-world asset tokenization as regulatory frameworks mature?