Binance, the popular cryptocurrency exchange, today announced support for Tezos coin staking with zero transaction fees. Tezos’ XTZ price started surging shorty after the announcement.
At the time of this writing, XTZ was trading at $1.29. That’s 5.89% up in the last 24 hours. Tezos coin staking is one of several attractive Proof-of-Stake (PoS) on Binance exchange right now.
Tezos XTZ is currently the most purchased cryptoasset on Binance, at the time of this publication.
What is Tezos?
Similar to Bitcoin (BTC) and Ethereum (ETH), Tezos functions as a decentralized ledger on the blockchain. Tezos allows project developers to create smart contracts and DApps that can upgrade themselves due to platform’s open-source nature.
Tezos’ main functions are as follow:
Self-Amendment: Most decentralized ledgers need to be updated via hard forks. Tezos, however, doesn’t need hard forks because it can upgrade itself automatically.
“This is important as the suggestion or expectation of a fork can divide the community, alter stakeholder incentives, and disrupt the network effects that are formed over time. Because of self-amendment, coordination and execution costs for protocol upgrades are reduced and future innovations can be seamlessly implemented.”
On-Chain Governance: stakeholders are the primary body of governance for Tezos’ protocol.
“The election cycle provides a formal and systematic procedure for stakeholders to reach agreement on proposed protocol amendments. By combining this on-chain mechanism with self-amendment, Tezos can change this initial election process to adopt better governance mechanisms when they are discovered.”
Decentralized Innovation: An amendment is put forward to reward those helping 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.”
Delegated Proof-of-Stake: This section is already explained on the next section below.
Smart Contracts & Verification: Michelson is the name of Tezos’ native smart contract language. It help simplify the verification process.
What is Tezos’ XTZ Coin & crypto staking?
To comprehend Tezos coin staking, it essential to understand the concept behind Proof-of-Stake (PoS). Staking is simply when a user purchase and hold a token on a smart contract for a period of time.
As a result of locking the coins, the user’s crypto asset increases by a percentage agreed upon. For example, if the user locks 1,000 XTZ coins at 10% interest per month, each month the user gets 1,000 + 10% = 1,100 XTZ coins. The calculation for month two is as follow: 1,100 + 10% = 1,210 and so on.
Tezos conducted its Initial Coin Offering (ICO) on July 2017. The campaign raise $232 million from investors and contributors around the world. On September 17, 2018, the developers launched Tezos mainnet.
Raised in the U.S., Anton has a B.A. in economic history and has been in the cryptocurrency industry since 2017.