Particularly safe: Tezos: Who is behind the still young cryptocurrency and what makes it so popular? | message
Forex in this article
The initial coin offering went well, then there were delays and litigation
Tezos Smart Contracts are considered particularly secure, hard forks are avoided
Tezos ousted Ethereum at South America’s largest bank
Tezos is a blockchain company that trades XTZ tokens and focuses on working with smart contracts. The company, which was founded in 2017 by the former Morgan Stanley analyst Arthur Breitman and his wife Kathleen Breitman, primarily advertises security, which it wants to offer with the help of a special technology.
Product launch delay and class action lawsuit
The Initial Coin Offering (ICO) of the digital currency of the same name, Tezos, was initially a great success: It started on July 1, 2017 and became the second largest ICO in history – Tezos took in BTC and Ethereum worth $ 232 million. Only Filecon’s ICO was bigger, valued at a total of $ 257 million.
But then there were difficulties with the then president of the foundation of the company “Dynamic Ledger Solutions”, which was founded by the Breitmans to develop the blockchain source code. The foundation and the company are based in Switzerland, and it was reportedly agreed that the foundation would buy the finished source code from the company. According to media reports, Johann Gevers (President of the Foundation) refused to resign after an internal dispute and also blocked the foundation’s financial resources.
For this reason, the currency could not be developed further efficiently and a delay in the product launch was the result – Gevers finally resigned. At the same time there was a class action lawsuit against the Breitmans alleging that they had traded in unregistered securities.
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The Tezos technology: Baker instead of miner
At Tezos, “Baker” produce a block with a minimum share – “Stake” – of 10,000 XTZ. The so-called “baking” system is similar to that of the miners, but is more secure according to information on the Tezos website. Likewise, the decentralized organization of the blockchain apparently works well – hard forks are avoided: the first governance update “Athens” has already been successfully adopted. By avoiding hard forks, Tezos says that large interest groups can be served for as long as possible.
Unlike other crypto currencies, the smart contracts are checked using a mathematical process. A proof-of-stake is carried out – errors should be almost completely excluded. By checking the shares instead of (as with BTC) computing power, the process is intended to prevent an individual from pretending to be many in the automatic reconciliation mechanism that replaces the accountant.
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What will happen to Tezos in the future – is everything just hype?
Tezos has competition: Among other things, the crypto currency Ethereum. At BTC Pactual, the largest bank in South America, security tokens have only been issued on Tezos since 2019 – previously, the bank relied on Ethereum for Security Token Offerings (STO). Of course, that doesn’t mean that Tezos has already ignored all competition. But: Tezo’s market capitalization secures the cryptocurrency a place among the ten largest digital tokens.
On its website, Tezos explains that in the future the privacy, which is also linked to data protection, consensus, scalability, smart contracts and the principles of the blockchain should be improved. It can be assumed that these topics will gain in importance in the future – so Tezos probably doesn’t have a bad chance of continuing to defend its position among the top 10 cryptocurrencies.
Olga Rogler / Forex-news.com.net editors
Image sources: dencg / Shutterstock.com, Alexander Yakimov / Shutterstock