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What Is the Native Cryptocurrency of the Tezos Blockchain?

A digital representation of Tezos (XTZ) cryptocurrency with a blockchain network backdrop.

The Tezos blockchain has become a standout in the crypto world for its unique approach to decentralized governance and smart contract functionality. At the heart of the Tezos ecosystem lies its native cryptocurrency, XTZ, often referred to simply as “Tez.” Unlike many other blockchains, Tezos is built to evolve over time through on-chain governance, allowing token holders to vote on protocol upgrades without the need for hard forks. But what exactly is XTZ, and what role does it play in this innovative blockchain?

Understanding Tezos (XTZ): The Foundation of a Self-Amending Blockchain

XTZ is the native cryptocurrency of the Tezos blockchain. It was designed to power the ecosystem, facilitating transactions, securing the network through staking, and enabling decentralized governance. The concept of a self-amending blockchain, as envisioned by the creators of Tezos, is rooted in the idea that a blockchain should be able to upgrade itself without disruptive forks or conflicts within the community. XTZ plays a crucial role in this process.

Launched in 2018 after one of the largest initial coin offerings (ICOs) of its time, Tezos raised over $232 million, signaling widespread investor interest. Since then, the network has been progressively evolving, with the XTZ token at its core, driving both utility and governance.

Tezos Governance: How XTZ Empowers Decentralized Decision-Making

One of the defining features of the Tezos blockchain is its on-chain governance model. Unlike many blockchains where governance is either external or based on off-chain decisions, Tezos enables token holders to participate directly in decision-making processes. By holding XTZ, users can propose, discuss, and vote on protocol upgrades, ensuring that the network evolves in a decentralized manner.

This governance mechanism helps prevent hard forks, a common issue in other blockchain networks. Each XTZ holder has a vote proportional to the amount of tokens they hold, allowing them to have a voice in the network’s future development. This approach keeps Tezos flexible and adaptable, giving it an edge over many other blockchain platforms that face stagnation or disputes over governance changes.

Staking XTZ: How Tezos Ensures Security Through “Baking”

Tezos uses a proof-of-stake (PoS) consensus mechanism, which is more energy-efficient compared to the proof-of-work (PoW) models used by older blockchains like Bitcoin. In the Tezos ecosystem, the process of staking is referred to as “baking.” Users who hold XTZ can participate in baking by either running their own node or delegating their tokens to a baker.

Bakers validate transactions, create new blocks, and maintain the security of the network. In return, they earn rewards in XTZ. This staking mechanism not only incentivizes network participation but also aligns the interests of all network participants, ensuring that bakers act in the best interest of the blockchain. By staking or delegating their XTZ, users can earn passive income while contributing to the network’s security.

Baking vs. Delegating: Maximizing Rewards with XTZ

For users who may not have the technical expertise or resources to run their own baking node, Tezos offers the flexibility of delegating their XTZ to professional bakers. This system allows every XTZ holder to participate in the staking process, regardless of their technical knowledge or the amount of XTZ they hold.

Delegating XTZ does not require transferring ownership of the tokens, ensuring that users maintain control of their assets. This democratized approach makes Tezos staking accessible to a wide range of users and is one of the key factors behind its growing popularity.

The Role of XTZ in Tezos Smart Contracts

Beyond governance and staking, XTZ is also used to pay for transaction fees on the Tezos network, including fees for executing smart contracts. Tezos supports advanced smart contracts through its Michelson programming language, designed for secure and formally verifiable code.

Smart contracts on Tezos can be used for a wide variety of applications, from decentralized finance (DeFi) to non-fungible tokens (NFTs), and everything in between. By using XTZ to pay for contract execution, the blockchain ensures that resources are properly allocated and that the network remains efficient.

Why Michelson Matters: Smart Contract Security in Tezos

Unlike many other blockchains that use general-purpose languages for their smart contracts, Tezos uses Michelson, a language designed specifically to enhance security. Michelson enables formal verification, a process where the correctness of the contract’s code can be mathematically proven. This added layer of security is particularly important in DeFi applications, where even a small vulnerability can lead to significant losses.

XTZ thus serves as the fuel for this smart contract system, providing the computational resources needed to execute these contracts securely and efficiently.

Tezos and DeFi: How XTZ Powers a Growing Ecosystem

As decentralized finance continues to expand, Tezos is emerging as a competitive platform for DeFi applications. XTZ plays a key role in this growing ecosystem, not only as the currency used within these platforms but also as the asset that backs various DeFi protocols.

Tezos’ unique approach to governance and its energy-efficient consensus model make it an attractive option for DeFi developers and users alike. Projects built on Tezos are benefiting from its robust infrastructure, security features, and scalable design, allowing them to compete with DeFi projects on other blockchains like Ethereum.

NFTs and XTZ: Tezos as a Green Blockchain for Digital Art

Another area where Tezos and XTZ are making waves is in the world of non-fungible tokens (NFTs). Tezos has positioned itself as an eco-friendly alternative to Ethereum for NFT minting and trading. Thanks to its proof-of-stake consensus mechanism, the energy consumption of Tezos is significantly lower than that of proof-of-work blockchains, making it a more sustainable option for artists and collectors concerned about the environmental impact of NFTs.

XTZ is the currency used in Tezos-based NFT marketplaces like Hic et Nunc, where artists can mint, buy, and sell digital artwork. The low transaction fees and energy efficiency of Tezos have contributed to its growing popularity in the NFT space.

Conclusion: XTZ as the Lifeblood of Tezos’ Innovative Blockchain

XTZ, the native cryptocurrency of the Tezos blockchain, plays a vital role in the network’s unique approach to governance, staking, and decentralized applications. Its use as both a governance tool and a transactional asset within the ecosystem ensures that Tezos can evolve over time without the disruptions seen in other blockchains.

From smart contract execution to staking rewards and NFT trading, XTZ powers a diverse range of activities within the Tezos ecosystem. As the blockchain space continues to grow and mature, Tezos and its native cryptocurrency are well-positioned to play a pivotal role in shaping the future of decentralized technology.


FAQs

What makes Tezos different from other blockchains?
Tezos features an on-chain governance system that allows stakeholders to vote on upgrades, avoiding hard forks and ensuring the blockchain evolves smoothly over time.

How can I earn rewards with XTZ?
You can earn rewards by “baking” XTZ, which involves staking your tokens to validate transactions. You can either run a baking node yourself or delegate your tokens to a baker.

Is Tezos energy efficient?
Yes, Tezos uses a proof-of-stake consensus mechanism, which is much more energy-efficient than proof-of-work systems like Bitcoin and Ethereum.

What is the main use of XTZ in the Tezos ecosystem?
XTZ is used for governance, staking (baking), transaction fees, and executing smart contracts. It also plays a role in Tezos-based NFT and DeFi applications.

Can I delegate XTZ without losing control of my tokens?
Yes, delegating XTZ does not require transferring ownership of your tokens. You maintain full control while allowing your tokens to contribute to staking rewards.

Why is Tezos popular for NFTs?
Tezos is an eco-friendly blockchain due to its low energy consumption. This has made it a popular platform for artists and collectors in the NFT space.

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Altcoins

Avalon Lab’s $AVL TGE : Here’s the First Impressions

The decentralized finance (DeFi) market has integrated new innovations that combine blockchain technology and traditional finance. A recent event in the segment is the Avalon Labs, a bitcoin-backed DeFi platform’s new token $AVL . On 6 February $AVL Airdrop was concluded on Binance. Therefore, the door to great earnings and opportunities is opening.

What is Avalon Labs?

Avalon Labs: Revolutionizing Bitcoin Finance

Powering ₿itcoin On-Chain Capital Markets. Avalon Labs is rapidly emerging as the dominant force in the Bitcoin-backed CDP space and the largest money market for Bitcoin derivatives.

  • A stablecoin solution – Stemming volatility in the market by providing a stable solution.
  • Yield accounts – Enabling the users to earn passive income on their crypto holdings.

Avalon Labs uses Bitcoin as the base collateral and combines it with flexible DeFi solutions, making its services appealing to crypto investors who want to gain new financial opportunities.

Avalon Lab’s New $AVL Governance Token

The newest governance token $AVL by Avalon Labs is aimed at empowering the community and building the Avalon ecosystem. $AVL token holders receive voting rights which enables them to make important decisions and control the future direction of the platform. $AVL goes beyond governance by providing real benefits such as rebates, special loans, and bonus tier allocations, further improving the user experience within Avalon.

With the earning capabilities still in stock after the airdrop on Binance, its primary focus is sharing the platform in order to broaden its scope of earnings. Additionally, TGE is set to be around the corner so these earnings should increase relatively soon.

https://twitter.com/avalonfinance_/status/1887427298288410810/

Avalon Labs is gearing up for the launch of its governance token, $AVL, scheduled for February 12. As a Bitcoin finance hub, Avalon offers a BTC-backed stablecoin, $USDa, and provides staking opportunities with attractive annual percentage yields (APY). By staking USDa, users can earn a total of 45% APY, divided into 20% in USDa and 25% in $AVL tokens. This initiative not only incentivizes participation but also integrates users into Avalon’s growing ecosystem. The introduction of $AVL marks a significant milestone, empowering the community with governance capabilities and aligning stakeholders with the platform’s future developments.

AI KAITO’s Pre-TGE Arena surrounds $AVL, which is already Kaito AI’s top gainer

Kaito is a platform that hosts unstructured information web3 and utilizes AI to create actionable insights from the retrieved data. Kaito provides an index of various Web3 content such as social media, governance forums, research papers, news articles, podcasts, and even conference speeches which makes it easy for users to grapple with the world of blockchain information.

KAITO AI’s Token and Narrative Mindshare

It’s a known fact that the Web3 space is cluttered with irrelevant information, which makes it frustrating to stay on top of things. The Token mindshare feature specifically monitors the attention span tokens receive on a given period of time.

They track tokens that are gaining attention and those which are losing value. Moreover, their narrative mindshare allows users to understand popular stories and developments within the Web3 space, enabling users to make well informed investment and strategic choices.

https://twitter.com/avalonfinance_/status/1887393582883217456

Even on such a useful and innovative AI-powered platform, $AVL shows its strength. Get your hands on some $AVL and start sharing!

Avalon Labs has made strides in the DeFi space by combining Bitcoin’s security with decentralized financial services. This combination is particularly important because it broadens the use of Bitcoin beyond mere storage of value. Avalon’s BTC backed stablecoin, $USDa, on the other hand, offers a reliable hedge against volatility while also having the perks of decentralization, unlike other DeFi platforms that depend on Ethereum based assets.

In addition, the governance model powered by $AVL enables an approach where users can collaboratively decide the future direction of the platform. There is vast potential for Bitcoin backed DeFi and Avalan is bringing this possibilty to life. It provides users with a different option compared to traditional centralized crypto lending platforms which routinely put up stringent rules and governance over peoples’ funds.

With the rise of the need for a supplementary financial alternative, Avalon Labs could lead BCT-based DeFi solutions and serve as a foundation for deeper integrations and usage by the general public.

How to Acquire and Make Use of $AVL

For $AVL, users are starting to look for ways to earn more with the governance token after a successful $AVL airdrop on Binance. Users who missed the airdrop still have ways to get into Avalon:

  1. Purchasing $AVL – Users will be able to buy and sell the token on major exchanges right after TGE.
  2. $USDa Staking – Users can stake their USDa backed with BTC and earn as much as 45 percent APY (20 percent in USDa, 25 percent in $AVL).
  3. Governance Participation – Voting is possible with $AVL tokens in which users can select policies, vote on proposed updates, and changes in incentives.
  4. Exploitation of Other Benefits – These users of Avalon could receive rebates, special loans, and investment offers that are not available to non-$AVL holders.

As with best emerging digital asset, $AVL participation features will be more prominent within the Avalon ecosystem. These properties will make the token interesting for long-term investors, participants of DeFi. Grab the opportunity before it is too late!

Website: https://www.avalonfinance.xyz/

Twitter: https://x.com/avalonfinance_/status/1881236795037565404

Discord: https://discord.gg/avalonlabs

Telegram: https://t.me/AvalonLabs_Official

Medium: https://medium.com/@avalonlabs

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Altcoins

Berachain Skyrockets 660% – The Altcoin That’s Defying Market Trends

Berachain Skyrockets 660% – The Altcoin That’s Defying Market Trends

The cryptocurrency market has been turbulent, with Bitcoin and other major altcoins facing downward pressure. However, one project has defied the odds—Berachain (BERA). Since its mainnet launch, BERA has skyrocketed by 660%, making it one of the top-performing altcoins. But what’s driving this massive rally? Let’s explore the key factors behind Berachain’s surge.


Berachain’s Mainnet Launch Fuels 660% Rally

Berachain introduced its highly anticipated mainnet, positioning itself as a revolutionary Layer-1 blockchain. Unlike traditional Proof-of-Stake (PoS) systems, Berachain operates on Proof-of-Liquidity (PoL). This model rewards users for providing liquidity, ensuring a fluid and active ecosystem.

What Makes Berachain Unique?

  • Proof-of-Liquidity Model: Unlike PoS, where validators are selected based on staked assets, Berachain encourages liquidity providers to secure the network.
  • Massive Early Adoption: Before launching, Berachain secured over $3 billion in liquidity, indicating strong investor confidence.
  • Top-Tier Exchange Listings: Major exchanges like Binance and Coinbase quickly listed BERA, adding credibility and accessibility.

These factors contributed to a rapid increase in demand, propelling Berachain to a 660% price surge within days of its launch.


Crypto Market Faces Challenges as Berachain Shines

While Berachain has been soaring, the broader crypto market has struggled.

Altcoins Struggle Amid Market Uncertainty

  • Ethereum (ETH) and Ripple (XRP) have dropped by nearly 1% in the past 24 hours.
  • Avalanche (AVAX) has fallen by 3%, while Sui (SUI) has declined by 5%.
  • The Crypto Fear & Greed Index has dropped to 44, indicating growing fear among investors.

Why Is the Crypto Market Struggling?

Several factors have contributed to the market’s downturn:

  • Regulatory Uncertainty: Potential trade tariffs from former U.S. President Trump have created tension.
  • Interest Rate Concerns: The Federal Reserve is expected to maintain higher interest rates for longer, reducing risk appetite.
  • Large Liquidations: The market has seen over $100 million in liquidations, leading to further price declines.

Despite these challenges, Berachain has outperformed the market, proving that innovative projects can thrive even in uncertain times.


Best Wallet Presale Nears $10M—Next Big Opportunity?

While Berachain has dominated headlines, another project is gaining attention. Best Wallet, a new DeFi wallet solution, has raised over $9 million in its presale.

What Is Best Wallet?

Best Wallet aims to simplify crypto transactions by combining multiple services into one platform.

Key Features:

  • Secure Multi-Asset Wallet: Store and manage multiple cryptocurrencies in one place.
  • Decentralized Exchange (DEX): Swap tokens directly within the wallet.
  • Crypto Debit Card: Spend crypto like cash, making it more usable in daily life.

With its native BEST token priced at $0.0239, many investors see this as a potential early-entry opportunity before its full launch.


Conclusion: Is Berachain the Next Big Crypto?

Berachain’s 660% surge has captured the attention of the crypto community. Its unique Proof-of-Liquidity model, early adoption, and major exchange listings have fueled its explosive growth.

Meanwhile, the broader crypto market remains under pressure due to regulatory concerns, interest rates, and liquidations. However, innovative projects like Berachain and Best Wallet prove that strong fundamentals can defy bearish trends.

As the market evolves, will Berachain continue its upward trajectory, or is a correction inevitable? Only time will tell.


Frequently Asked Questions (FAQs)

Why is Berachain’s price increasing so fast?

Berachain’s Proof-of-Liquidity model, early liquidity injection, and exchange listings have driven massive demand, resulting in a 660% surge.

How does Berachain’s Proof-of-Liquidity differ from Proof-of-Stake?

Unlike PoS, where validators stake coins to secure the network, PoL rewards users for providing liquidity, ensuring better asset circulation.

Is it too late to invest in Berachain?

While BERA has already surged, its long-term success depends on continued adoption and development. Always do your research before investing.

Why is the crypto market down while Berachain is rising?

The broader market is experiencing sell-offs due to interest rate concerns and liquidation events, but Berachain’s unique model has helped it defy the trend.

What is Best Wallet, and why is it gaining traction?

Best Wallet is a next-generation crypto wallet that offers an integrated DEX, secure storage, and a crypto debit card, making crypto more accessible.

Will Berachain maintain its momentum?

If adoption continues and liquidity remains strong, Berachain could sustain its growth. However, market conditions and competition will play a role.

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Altcoins

Berachain Launches Mainnet with $632 Million BERA Token Airdrop

Berachain Launches Mainnet with $632 Million BERA Token Airdrop

Overview of the BERA Airdrop

Berachain, a Proof-of-Liquidity (PoL) Layer-1 blockchain, officially launched its mainnet and announced a massive airdrop worth $632 million in BERA tokens. The airdrop aims to reward early community users and drive engagement in the ecosystem.

Key Airdrop Details:

  • 80 million BERA tokens were distributed, 15.8% of the total 500 million tokens available at launch.
  • NFT holders of Bong Bears and related projects (Bond, Boo, Baby, Band, and Bit Bears) received the largest share.
  • Testnet contributors earned 8.2 million BERA tokens for their role in network development.
  • Active community members on Discord and X (formerly Twitter) were also rewarded.
  • Airdrop claim process began on February 6, with verification via Berachain’s official airdrop checker.
  • Participants from the “Request for Broposal” campaign and other initiatives will receive tokens starting February 10.

Tokenomics and Allocation

Berachain’s token supply is divided among different sectors:

CategoryPercentage
Community marketing & engagement13.1%
Research & development20%
Institutional investors34.3%
Big Bera Labs & project contributors34.3%

This allocation supports ecosystem growth, development, and long-term sustainability.

Understanding Berachain’s Proof-of-Liquidity (PoL) Model

Berachain operates on a unique Proof-of-Liquidity (PoL) consensus mechanism, unlike traditional Proof-of-Stake (PoS) or Proof-of-Work (PoW) models.

How PoL Works:

  • Liquidity providers stake assets to increase network security.
  • Instead of mining, Berachain redirects network revenue to liquidity providers and stakers.
  • This model enhances decentralization and rewards participation in the ecosystem.

The Role of BERA Token:

BERA serves two major functions:

  1. Gas Token: It powers transactions on the network.
  2. Governance & Security: Users stake BERA to participate in network decisions.

Market Influence and Exchange Listings

Following the mainnet launch, BERA tokens were listed on top exchanges, including:

  • Binance
  • Bybit
  • Bitget
  • MEXC
  • KuCoin

Initial Price Movement:

  • BERA launched at $8 per token.
  • Market volatility is expected as trading stabilizes.

Final Thoughts: A New Era for Blockchain

Berachain has entered the market with a strong start, introducing its PoL consensus model and rewarding early adopters. The combination of liquidity incentives, governance, and ecosystem growth makes it a promising blockchain contender.

With further development and adoption, Berachain could redefine liquidity management in DeFi and beyond. Stay tuned for more updates on this groundbreaking blockchain project.

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