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Tezos is an open-source protocol that works on a proof-of-stake consensus mechanism. By design, Tezos is a self-amending blockchain that is focused on long-term upgradeability. This allows Tezos to address some of the key issues in blockchain adoption like high energy consumption and lack of code verifiability.

Blockchains like Ethereum (ETH) are criticized for high transaction costs (gas fees) and slow confirmation times. Tezos actively works to provide a faster and more economical alternative through constant upgrades to its core protocol. One of the most recent upgrades to Tezos, Granada, reduced block creation time from 60 seconds to 30 seconds which resulted in lesser gas fees.

XTZ is Tezos’ native cryptocurrency coin, used for staking, governance and transaction fees. Tezos holders are rewarded for participating in the protocol’s proof-of-stake consensus mechanism and validating transactions. Tezos also uses a liquid proof-of-stake method, which means that stakers can un-stake any time without a lock-in period. At the same time, Tezos uses a five-stage governance proposal process with a heavy focus on active community collaboration, allowing token holders to propose, evaluate and approve the future development of the blockchain.