Tezos offers a platform that allows the creations of smart contracts and development of decentralized applications. Etheruem, NEO and EOS are also smart contract platforms, making them Tezos competitors.
Tezos' closest competitor is likely to be EOS, as both blockchains have a type of ‘delegated’ proof of stake and have a built-in governance model to make amendments to the blockchain without forking the network.
The self-amending blockchain feature of Tezos makes it different from other smart contract platforms. The protocol can evolve by upgrading its own code after coin holders have approved the changes.
Tezos wants to build blockchain technology that works better than existing leaders Bitcoin and Ethereum. Already it has developed a blockchain that is far less computationally intensive, requiring less power from miners (or bakers as Tezos calls them), but still maintaining a reliable proof of stake consensus mechanism which they have termed Liquid Proof of Stake (LPoS).
Tezos works in many ways in the same manner as other blockchains, but with a key difference. That innovative difference is in how additions and changes are made to the blockchain. It works like this:
A developer proposes some change or upgrade to the Tezos protocol. When doing so they can also attach an invoice to the proposal and if the change is approved by the community and added to the next upgrade they get paid in XTZ tokens. This has two benefits. It encourages developers to participate in Tezos development, and it also decentralizes the maintenance and development of the network.
Because developers are receiving tokens for their approved upgrades they get compensated immediately for their work on the Tezos network. They don’t need a corporate sponsor, and employer or any other traditional financial reward. They are free to work on what interests them.
Tezos has a unique, interesting consensus mechanism, called Liquid Proof-of-Stake.It falls somewhere in between classical PoS and its more controversial counterpart, delegated PoS. Platforms like EOS and TRON deviate from the above model by implementing a delegated proof-of-stake mechanism.
This means that token holders elect a certain number of block validators, thereby delegating the responsibility of deciding the course of the blockchain to the elected parties. These elected validators aren’t just anyone: they’re usually large organizations or companies with a lot of computing power and enough name recognition to run an election campaign. Tezos does allow delegation, but its “liquid PoS” model has a lower barrier of entry than DPoS does.
Tezos’ group of validators (or “bakers”) is a far less exclusive club: it allows up to 80,000 validators instead of a few dozen, and it doesn’t involve elections. You can become a Tezos block validator by holding a substantial number of tokens, just like you could on a classical PoS blockchain. However—and this is where delegation comes in—users who can’t afford to be validators can choose to delegate their tokens to validators and receive some of the rewards.
A security deposit is required to participate in the consensus process and if a participant behaves dishonestly, they can lose their deposit.
Modern software has most of us used to easy upgrades to new releases, but that hasn’t been the case with blockchains, where upgrades can be complex, contentious, and downright difficult. Tezos is a refreshing exception, where the upgrade process has been decentralized, making it nearly as easy as modern sofware upgrades.
Tezos aims to be a third generation blockchain, having a built-in governance model which allows for the blockchain to upgrade itself without having to fork the network into two different blockchains. Proposed amendments can include payment to individuals or groups that improve the protocol via a type of worker proposal.
Tezos allocates block production rights based on Proof-of-Stake. Each block is produced (“baked”) by a random stakeholder and “endorsed” by 32 other randomly chosen stakeholders. Tezos uses inflationary block rewards and transaction fees to incentivize validators (or “bakers”) to participate in reaching a consensus. To incentivize honest behavior, Tezos requires a baker to stake their Tezos (XTZ) for several weeks. Users who do not wish to participate directly in the consensus protocol can choose to delegate their rights to other users to participate on their behalf.
There are two types of accounts in the Tezos ecosystem
Implicit Accounts
These are the most common accounts in Tezos. They start with tz1 (Ex: tz1cJywnhho2iGwfrs5gHCQs7stAVFMnRHc1). This is a simple account that is generated from a pair of public/private keys. The tz1 public address is derived from the public key and each tz1 account has its own private key. These accounts have an account owner and account balance.
Implicit accounts cannot have a delegate. To delegate funds, they will need to transfer funds to an originated account and then a delegate must be set.
Originated Accounts
Along with implicit accounts you also have accounts for your smart contracts which are called originated accounts. These start with KT1 (Ex: KT1Wv8Ted4b6raZDMoepkCPT8MkNFxyT2Ddo).
List of fields in Tezos originated account:
Ledger
As for using the Nano Ledger S, the first step towards setting up your device is unboxing you device and checking if you have received all the accessories with the device. Once you have unboxed your device, you need to configure it and initialize it before being able to use it. The process is quite simple and will hardly take about 20-30 minutes post which you will be set to use your Ledger Nano S device.
Setup guide video: here
Trezor
As for Trezor, installing is really simple. To properly install it users should attach the unit to the computer. After that continue with installing the bridge which allows the Trezor to join with the computer. The first step is to connect the Trezor to device’s USB slot with the cable given in the box. After that, go to myTrezor.com and proceed with installing the browser extension. Trezor can also be used on Android or an iPhone, or on a Windows or Mac computer. Now, initiate the extension and myTrezor will direct you to pick a PIN. After this, you will notice nine buttons but the numbers are hidden. After this, users should check the Trezor’s screen to recognize which numbers are in which place because it switches every time. Now set the PIN. Shortly after, Trezor should present a 24-word wallet “seed”. In short, one word at a time. Note down this seed and save it carefully. If your Trezor device malfunctions or is lost, you can utilize the seed to reconstruct the complete wallet.
Setup guide video: here
Trust Wallet
Trust Wallet is one of the most trustworthy wallets amongst the users, especially since the largest exchange in the world, Binance had acquired it last year in June. Trust wallet offers XTZ support and is regularly updated and advanced with the latest technologies, which makes it effective for all kinds of users.
Atomic Wallet
Atomic Wallet is a decentralized wallet which is available for Mac, Windows and Linux operating systems, hence you don’t have to shift your operating systems. The wallet supports many currencies along with XTZ. What’s great about atomic wallet is also its in-built exchange, which allows you to quickly swap tokens while also having access to features like credit card purchases.
Tezbox
TezBox is one of the pioneers Tezos GUI wallet to be made by Tezos community.
TezBox is available now as a web wallet and as a desktop wallet for Mac & Windows users. However, Linux and mobile users (Android & iOS) need to wait. Moreover, it is a secured wallet interface for Tezos as all private keys are stored on your device safely. For enhanced security TezBox GUI wallet has also integrated with Ledger Nano S & Trezor, thus becoming the first wallet to do so. The UI of the wallet is very user-friendly, and developers can also easily integrate their DApps using TezBox.
According to wheretobuytezos.com, the most reputable vendor to offer credit card purchases for Tezos is Bitpanda.
Bitpanda
Bitpanda GmbH is a fintech company based in Vienna, Austria specialised in selling and buying Bitcoin and other cryptocurrencies. It has quickly grown to become Europes leading retail broker for Bitcoin, Ethereum, Litecoin and more with over 850,000 users.
It’s easy to create an account. All you need is an email address and password. The service supports two-factor authentication (2FA) as part of its “know your customer” (KYC) procedure. After you’ve created your account, you’ll be asked to provide your mobile number. A 6-digit SMS pin number will be sent to your phone, after which you’re asked to enter it on the site.
BitPanda has several account levels, each with its own verification requirements. We’ll discuss these in more detail below. For the moment, it’s worth noting that you can buy up to 50 EUR worth of bitcoins daily with nothing more than a verified email address and verified mobile number.
As an alternative, you can always use Binance or any other big exchange that supports tezos trading.
