What is Tezos (XTZ)?

Deep Dive

1. Self-Amending Governance

Tezos pioneered on-chain governance, letting stakeholders propose and vote on protocol upgrades directly. This avoids contentious hard forks (like Bitcoin’s SegWit split) by integrating changes seamlessly. For example, 14 protocol upgrades since 2018 have enhanced scalability and EVM compatibility (CoinMarketCap).

2. Security-First Architecture

Tezos uses Liquid Proof-of-Stake (LPoS), where users delegate tokens to validators (“bakers”) without locking funds. Its formal verification process mathematically proves smart contracts are bug-free before deployment—critical for RWA platforms like uranium.io, which tokenizes physical uranium custody (Oku).

3. Real-World Asset Ecosystem

Etherlink, Tezos’ EVM-compatible Layer 2, bridges Ethereum tools with Tezos’ security. It supports tokenized RWAs (e.g., uranium, treasury bonds) and DeFi protocols like Curve and Uniswap v3. This positions Tezos as a hub for compliant institutional adoption, highlighted by co-founder Arthur Breitman’s participation in Federal Reserve fintech panels (Finance Magnates).

Conclusion

Tezos combines upgradable governance, battle-tested security, and a growing RWA niche. Its focus on institutional-grade DeFi via Etherlink raises a pivotal question: Can it balance decentralization with the compliance demands of traditional finance?