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Tezos Explained:
A Comprehensive Guide

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How Tezos (XTZ) Works

Tezos is a blockchain-based cryptocurrency platform known for its innovative self-amendment and on-chain governance features. It enables stakeholders to propose and vote on protocol upgrades, fostering adaptability and security. Tezos uses a delegated Proof-of-Stake consensus mechanism, where validators are chosen by token holders. Its smart contract functionality supports DApps and token creation. Tezos' focus on formal verification enhances code security, making it attractive for applications in finance, digital collectibles, and more.

XTZ, also known as Tezos, is a blockchain-based cryptocurrency designed to offer a unique blend of self-governance, smart contract functionality, and security. Token holders can participate in network maintenance by staking their XTZ tokens and voting for validators, known as "bakers," who validate transactions and create new blocks. Bakers are rewarded for their service, and this system enhances the network's security and decentralization. XTZ can be used for peer-to-peer transactions and as a store of value. Besides, developers use XTZ to interact with and deploy smart contracts on the Tezos blockchain, enabling a wide range of decent DApps and services.

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  1. What Makes XTZ Unique?

    XTZ stands out for its self-amending blockchain, enabling protocol upgrades to be proposed and voted on by token holders, ensuring adaptability, and avoiding contentious hard forks. It also emphasizes formal verification for smart contracts, enhancing security and making it a preferred choice for apps demanding reliability and safety in the blockchain space.

  2. What Is XTZ Used for?

    XTZ is used as a transaction currency, for staking to participate in network validation, and as a means to interact with and deploy smart contracts, enabling the creation of decentralized applications and services. Additionally, XTZ is used in Tezos' unique on-chain governance, allowing token holders to propose and vote on protocol upgrades, shaping the platform's development.

  3. On What Blockchain Is XTZ Built?

    XTZ is built on its own native blockchain, known as the Tezos blockchain. It is a self-amending blockchain that usess a delegated proof-of-stake (DPoS) consensus mechanism and features on-chain governance to allow token holders to propose and vote on protocol changes, ensuring its own evolution and adaptability.