How To Buy Tezos (XTZ)?
A common question you often see on social media from crypto beginners is “Where can I buy Tezos?” Well, you’ll be happy to hear it is actually quite a simple and straightforward process. Thanks to its massive popularity, you can now buy Tezos on most cryptocurrency exchanges, including Coinbase and Binance in 3 simple steps.
Step 1: Create an account on an exchange that supports Tezos (XTZ)
First, you will need to open an account on a cryptocurrency exchange that supports Tezos (XTZ).
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In order to sign up, you will need to enter some basic information, such as your email address, password, full name and, in some cases, you might also be asked for a phone number or address.
Note: On specific exchanges, you might need to complete a Know Your Customer (KYC) procedure in order to be able to purchase cryptocurrency. This is most commonly the case with licensed and regulated exchanges.
Step 2: Deposit funds into your account
Many cryptocurrency exchanges will allow you to purchase Tezos (XTZ) with fiat currencies, such as EUR, USD, AUD and others. Furthermore, they will also provide you with multiple deposit methods through which you can fund your fiat account, such as credit and debit cards, ewallets or direct bank transfers.
Note: Some payment methods will have higher fees than others, such as credit card payments. Before funding your fiat account on your chosen exchange, make sure to do your due diligence to find out the fees involved with each payment method to avoid unnecessary costs.
Step 3: Buy Tezos (XTZ)
This process is similar across almost every cryptocurrency exchange. All you have to do is find a navigation bar or a search bar, and search for Tezos (XTZ) or Tezos (XTZ) trading pairs. Look for the section that will allow you to buy Tezos (XTZ), and enter the amount of the cryptocurrency that you want to spend for Tezos (XTZ) or the amount of fiat currency that you want to spend towards buying Tezos (XTZ). The exchange will then calculate the equivalent amount of Tezos (XTZ) based on the current market rate.
Note: Make sure to always double-check your transaction details, such as the amount of Tezos (XTZ) you will be buying as well as the total cost of the purchase before you end up confirming the transaction. Furthermore, many cryptocurrency exchanges will offer you their own proprietary software wallet where you will be storing your cryptocurrencies; however, you can create your own individual software wallet, or purchase a hardware wallet for the highest level of protection.
For more in-depth instructions, our ‘Absolute Beginner’s Guide To Cryptocurrency Investing‘ will take you through the process step-by step. In addition to providing instructions for sending and receiving your cryptocurrency.
And if you’re completely new to crypto our beginner, intermediate and advanced level articles will get you up to speed with everything you need to know about the cryptocurrency space starting out.
What Is Tezos (XTZ)?
Who Are the Founders of Tezos?
Arthur Breitman was the man who wrote the Tezos white paper — and in a nod to Satoshi Nakamoto, he wrote his works under the pen name L. M. Goodman. He argued that one of Bitcoin’s biggest failings was the lack of a governance process that invited contributions from the community who use the network — as well as the fact that new tokens couldn’t be issued through this blockchain.
He and his wife Kathleen founded a startup called Dynamic Ledger Solutions which was tasked with writing the code that would underpin the Tezos protocol. This company was subsequently purchased by the Tezos Foundation to ensure that it owned all of the intellectual property rights relating to the network.
How Tezos (XTZ) works
What makes Tezos (XTZ) unique?
Tezos has a few key differences from the other smart contract platforms in the blockchain space.
Tezos (XTZ) governance
Changes to Tezos follow an on-chain governance model. Changes to the blockchain are submitted by delegates through code updates. Stakeholders can then vote on whether they approve or deny the changes.
Thanks to this on-chain governance model, radical disruption can happen at any time – if the delegates approve of the proposed changes to the blockchain. This can involve system changes like amendments to fees or the process of baking, or anything really! This also results in a thriving community to discuss changes and new rules to make the system better.
How Does Tezos’ Self-Amending Model Work?
There are three main protocols that function as the backbone of the XTZ platform.
The network protocol is designed to determine blocks and broadcast them through the chain. Basically, it links the “gossip” network and the whole protocol. Everything that is needed by nodes to maintain the integrity of the network, such as downloading the state of the blockchain, connecting users and broadcasting finalized blocks to the network, is covered in the network protocol.
The transaction protocol governs the validity of transactions. It has a record of all blockchain information, especially that relevant to facilitating the transaction of peer-to-peer interactions and blockchain activities.
The consensus protocol enables the platform to reach consensus on the state of the blockchain. This is also where the DPoS model comes into play. Through this protocol, any blockchain modification, addition or upgrade, has to be voted upon by the stakeholders of the platform.
The network shell of the platform is what links these different protocols together. The network shell also refers to the “blockchain protocol,” which puts together the transaction and consensus protocol.
The form of the blockchain protocol is also the outcome of all modifications and upgrades on the network. To support the platform’s ability to “self-amend,” the blocks that stakeholders add to the chain — which may contain transaction information or protocol upgrades — are allowed to implement changes to the whole network.
From a more technical perspective, the coding language used to build Tezos, OCaml, is capable of identifying three main elements on the chain: blocks, protocols and transactions. Any module written in OCaml and implemented on the chain can update its overall state.
Proposed amendments that are accepted by stakeholders can include payment to individuals or groups that improve the protocol. This funding mechanism encourages robust participation and decentralizes the maintenance of the network. Fostering an active, open, and diverse developer ecosystem that is incentivized to contribute to the protocol will facilitate Tezos development and adoption.
Smart Contracts & Formal Verification
Tezos offers a platform to create smart contracts and build decentralized applications that cannot be censored or shut-down by third parties. Furthermore, Tezos facilitates formal verification, a technique used to improve security by mathematically proving properties about programs such as smart contracts. This technique, if used properly, can help avoid costly bugs and the contentious debates that follow.
Tezos (XTZ) use cases
Like other blockchain networks, Tezos is a fast way to verify financial transactions with minimized trust.
In September 2019, Gendarmerie’s cybercrime division (C3N) became one of the first governmental agencies to use Tezos for the validation of their judicial expenses.
Tezos can also be used to transfer ownership of illiquid assets, such as real estate, art, and jewelry. For instance, a company called MountX is leveraging Tezos for tokenization of real estate in Mexico.
Official website: https://tezos.com/