Thread by @Cov_duk

#tezos 101: The self amending blockchain

Here's everything you need to know about Tezos, the open source, Liquid PoS chain that's self amending.

A thread🧵👇 $XTZ

2. #tezos is a public open source PoS blockchain that is energy efficient and low power cost.

Tezos incorporates a self amending governance system, which allows for regular updates and improvements while leaving the mechanisms intact.

3. #Tezos eliminates hard fork problems and proves code safety through formal verification.

BTC and ETH have a couple of problems. Hard forks are very complex and have a lot of risk, PoW is energy intensive.

4. Some chains use low level languages to create smart contracts, reducing trust in the reliability of the code.

5. A hard fork  is a radical change to a network's protocol that makes previously invalid blocks and transactions valid, or vice-versa.

A hard fork requires all nodes or users to upgrade to the latest version of the protocol software.
investopedia.com/terms/h/hard-f…

6. #Tezos was founded by @ArthurB to solve these problems.

Back in 2017, Tezos had its fundraiser. Donors received $XTZ, the native token, based on their contributions.

Unlike coins like BTC, $XTZ has no hard cap.

7. The #Tezos foundation was established to manage the funds and promote the use of Tezos.

The Tezos foundation has no control over the Tezos blockchain.

Tezos has focused on partnering with educational and research institutions, developers and activists.

8. #Tezos smart contracts are deployed using an operation, which requires fees. Tezos uses a modified PoS consensus mechanism known as Liquid Proof of stake.

Proof of stake mechanisms utilize validators to gather transactions and create blocks.

9. Validators stake a certain amount of coins to guarantee the integrity of the chain. In exchange they earn rewards.

This allows for a low cost, scalable mechanism, but it has its cons.

10. The rich get richer, long range attacks become possible and stake grinding becomes a thing.

Read more here: opentezos.com/tezos-basics/l…

11. Delegated Proof of stake (DPoS) is an upgrades PoS system where users, even those with a small number of coins, can delegate their coins to a validator and thus participate in staking.

12. #Tezos’ Liquid PoS (LPoS) is an evolution of DPoS.

In the LPoS mechanism, a validator is called a baker or an endorser.

Any user can become a baker or endorser if they have enough coins, if not they can delegate their coins to a validator.

13. LPoS dilutes the total network activity and makes it more inclusive.

Bakers create new blocks while endorsers, agree on blocks.

Currently, A validator needs 8,000 $XTZ to take part in the consensus, which will soon be lowered to 2000 $XTZ.

14. #Tezos is a self-amending blockchain that tests and implements upgrades without the need of a hard fork.

The problem with hard forks is that it sometimes leads to the chain splitting into two.

15. #Tezos’ self amending process is similar to that of a corporation where shareholders vote on proposals and decide the future of the company.

16. Essentially, #tezos and Tezos validators go through a series of voting periods where a new proposal is introduced, explored, tested and then adopted.

Based on majority the proposal goes through each round and is ultimately adopted if majority wants it to.

17. $XTZ is the native currency of Tezos used for governance, fees and rewards. Bakers and endorsers gain $XTZ rewards.

Tezos has an interesting history with both ups and downs.

Tezos focuses on long-term upgradability, secure smart contracts, and open participation.

18. It’s unqiue LPoS consensus mechanism allows it to be more inclusive.

One of Tezos’ biggest edges is that it can continuously upgrade without the need of forks. Also, Tezos has a growing ecosystem of NFTs, DeFi and other protocols

19. Accounts to follow for #tezos & $XTZ insights:
@ArthurB @Pummelpaffpaff @tezos @TezosFoundation @iPUSHDOTs @Artistwithwords @ArtvisionNFT @MackTezos @TezosCommons @hightopdoteth @joannacanara @Liffi_Wongso @objktcom @CryptoCapflow @SnTimeline

RT would mean a lot!

20. I hope that was insightful, a retweet would mean a lot.

I regularly post 101s and breakdowns, follow to stay updated.

Here are my past threads: notion.so/covduk/4798517…