3. Advantages of Tezos
Continuous Updates and Improvements: The self-amending nature of Tezos allows for continuous protocol upgrades without disruptive forks. This ensures the network remains up-to-date and can adapt to new technological advancements without fracturing the community.
Energy Efficiency: Tezos' use of the Proof-of-Stake (PoS) consensus mechanism is far more energy-efficient compared to Proof-of-Work (PoW) networks like Bitcoin. This reduces the environmental impact of running the blockchain.
Community Governance: Tezos encourages active participation from its community in the governance of the network. Token holders can vote on proposed protocol changes, which gives the community more control over the future direction of the platform.
4. XTZ Token
Tezos' native cryptocurrency is XTZ. XTZ is used for a variety of purposes, including staking (participating in the consensus process), paying transaction fees, and voting on protocol upgrades. Users can earn rewards by staking their XTZ tokens in the network.
5. Use Cases and Applications
Financial Applications: Tezos is used for digital asset trading and the creation of custom tokens, which makes it a strong platform for decentralized finance (DeFi) projects.
Enterprise Solutions: The platform is also suitable for enterprise applications such as supply chain management, identity verification, and insurance, which benefit from Tezos' security and scalability.
Art and Collectibles: Tezos has become popular in the world of NFTs (Non-Fungible Tokens) due to its low transaction fees and eco-friendly features, offering a more sustainable option for creators and collectors.
6. Challenges
Adoption: Despite its technical advantages, Tezos has not achieved the same level of adoption as Ethereum, which has a larger ecosystem of developers and users.
Developer and Community Support: Tezos has a smaller developer community compared to Ethereum, which can pose challenges in terms of ecosystem growth and innovation.