Altcoin Buzz: Analyzing the Tezos ecosystem, why we believe XTZ is about to explode?

Author: Altcoin Buzz

Compiled by: Shenchao TechFlow

Abstract: This content is a written summary of Altcoin Buzz's analysis video on Tezos, which has 355,000 followers on YouTube, to facilitate quicker and easier reading. The content includes price analysis and judgments, so please approach it with caution.

Video Content as Follows:

We have heard too much about Tezos updates, such as Ubisoft, Grammy, and NFTs. We hope to gain corresponding value.

Aren't we all waiting for that big explosion to happen? Yes, more specifically, I am talking about the mainstream adoption of blockchain, which is a dream for everyone in the cryptocurrency space.

You know, when we see gaming giants like Ubisoft collaborating with Tezos, we feel very excited. We feel that we are on the path to achieving this goal. However, the price of Tezos' native token XTZ has risen from $2 to $9 since the beginning of this year. Therefore, the question that must be asked is, is there still room for price growth? Additionally, is it worth the risk given the current market conditions? You have questions, we have answers.

Tezos Overview

Tezos is an open-source proof-of-stake blockchain. Tezos supports digital assets and applications while allowing stakeholders to self-upgrade through a formal verification process. Specifically, its design makes it an ideal choice for applications in the financial sector, such as tokenized assets and loans, essentially covering anything with significant real-world value that needs to ensure funds are not lost or frozen due to code failures.

Even the Grammy Awards are looking to collaborate with Tezos. Check out this NFT platform, one of the NFTs built on Tezos, which is collaborating with the Recording Academy to create digital collectible NFTs to commemorate the 64th, 65th, and 66th Grammy Awards.

Functions of XTZ

Let's talk about some of the features that Tezos offers. Compared to blockchains like Ethereum and Cardano, Tezos supports the development of smart contracts and decentralized applications (dApps) that cannot be reviewed or shut down by any external party.

Tezos indeed has a host of features that set it apart from other proof-of-stake protocols. For example, formal verification is much easier, which helps both users and developers avoid costly transactions. Additionally, Tezos allows early stakeholders to participate in the negotiation process. Thus, every participant is rewarded for contributing to the security and stability of the network.

Moreover, it is cheaper than other consensus processes, lowering the barrier to entry. For instance, if you are a user who does not want to participate directly in the consensus process, you might want to delegate your rights to other users who will participate on your behalf, while you still earn rewards.

Tezos is one of the most energy-efficient blockchains in the entire ecosystem, consuming only 0.00006 terawatt-hours of energy per year. For reference, this is even less than 0.001% of the annual consumption of the Ethereum blockchain, which is about 26 terawatt-hours.

Tezos Team

Let's continue to look at the Tezos team. Tezos is supported by the Tezos Foundation, which is a Swiss foundation supervised by the Swiss Federal Foundation Supervisory Authority. The Tezos Foundation is also continuously audited by one of the most renowned auditing firms, PwC, and it has over $1.2 billion in assets and over $233 million in committed funds.

Token Economics

Tezos' native token XTZ has a deflationary model, with the current trading price around $4.53. Unfortunately, like other products in the market, it has seen a decline, and you can see that its market cap is less than $4 billion, with a 24-hour trading volume of less than $300 million.

Tezos has a circulating supply of 869 million, with an initial total supply of 10 billion tokens. XTZ is definitely a multi-purpose token with the following advantages: you can use it to pay transaction fees within the Tezos ecosystem; you can also use it to pay transaction fees for executing smart contracts; it is the official currency for validators or bakers, representing their income; you can stake XTZ on the network to validate transactions and blocks; it also grants voting rights in governance protocols.

Equally important, one of the key components of Tezos' PoS consensus mechanism is their validators, also known as bakers. Bakers, or what we know as validators, play a crucial role in the Tezos network, and for this, they can obviously earn higher, actually quite substantial rewards.

Looking at these statistics, 369 validators with nearly a 72% staking rate sounds indeed impressive. Yes, it makes Tezos a highly decentralized network with higher staking, which also contributes to the security of its network, and we hope, at least theoretically, it can lead to better appreciation potential for XTZ.

Ecosystem

Tezos provides its developers with a very powerful platform where anyone can access very basic introductory materials. They can also write smart contracts in various different languages, which will be translated into Tezos' official coding language, Michelson.

You can also choose from a plethora of libraries to integrate Tezos with your dApp. Additionally, the Tezos Foundation offers scholarships to help develop blockchain. Furthermore, the Tezos ecosystem has many other tools that make exploration easier.

Enterprise and Governance

Tezos' technology has been used in enterprise and government projects, such as Money Track, a directed currency payment platform that digitizes and protects directed currency flows. Website: https://www.moneytrack.io/

Easy Wallet is a global POS payment software editor that has created a real-time retail payment system. This solution integrates current payment terminal software with customers' mobile wallet applications.

Then there is Werenode, a startup that allows you to pay for electric vehicle charging at charging stations using only mobile funds. Website: https://werenode.com/

Finally, Skillz, a company that will soon manage and monitor your blockchain applications, allows you to choose the infrastructure and regions that best suit your needs, such as Azure, Scaleway, Google Cloud, and Amazon Web Services relying on Kubernetes open-source application containers. Website: https://www.skillz.com/

Latest News on Tezos

Let's talk about recent developments here. These are the latest news reports related to the Tezos ecosystem.

Recently, Tezos collaborated with Pantone to explore the rapidly expanding and exciting world of digital art.

Tezos also formed an alliance with Rarible to create Tezos NFTs, making them available on this exceptionally popular marketplace.

Tezos NFTs were also showcased at the 2021 Art Basel Miami Beach fair, which featured nearly 5,000 NFTs from 26 artists across 15 different countries.

Lastly, Tezos launched a two-week programming marathon in Africa to help inspire its local Web3 developers. More information can be found at Tezosafrica.com.

Roadmap

Tezos recently launched its eighth and final upgrade named "Hangzhou." Before this milestone event, Tezos had distributed its roadmap across different upgrades.

To summarize our viewpoint, it is clear that the continuous improvements in the Tezos blockchain protocol have brought more investments and developers, and as a rapidly developing ecosystem, it is not surprising that some major mainstream players have collaborated with Tezos.

We believe it is likely to be one of the first blockchains to achieve mainstream status, or at least to move towards mainstream adoption in the way we have been waiting for.

With such a strong foundation, Tezos' XTZ token, at least in our view, should have the potential for appreciation in the future, making it a solid coin worth holding long-term. Again, this is not about getting rich overnight. We never propose or suggest quick wealth schemes. Blockchain, and indeed all great cryptocurrency projects in this space, are slow wealth-building plans.

If you have the patience and enough strength, at least in terms of what we are doing, we are investors in Tezos, and we have listed all the reasons in this article.