What is Tezos (XTZ)? Its Highlights and Why It's Called the Blockchain of the Future

Meet Tezos (XTZ), a self-scaling, low-fee, secure blockchain that's being called the blockchain of the future.

Tezos is an open-source blockchain designed to solve common problems faced by many blockchain networks — such as the need for a hard fork when upgrading or improving the system.

What makes Tezos unique is its self-amendment mechanism, which allows the network to update itself directly. Holders of the XTZ token can vote and participate in decisions about the network’s development direction. This eliminates the need to create a new network or force users to choose sides, as in hard fork cases, resulting in greater network stability and continuous evolution.

In addition, Tezos uses a Proof-of-Stake (PoS) consensus mechanism, which is more environmentally friendly than Proof-of-Work mining. It also enables token holders to participate in transaction validation, earn rewards, and vote on protocol upgrades — all at the same time. This integration of blockchain and community helps Tezos grow sustainably while effectively meeting users’ needs.

You can check the real-time Tezos price, view the latest updates, and monitor market movements closely.

Tezos was developed in 2014 by Arthur Breitman and his wife Kathleen Breitman, two developers who recognized the limitations of early blockchains such as Bitcoin and Ethereum — particularly issues related to network upgrades and community conflicts. They designed Tezos to be a blockchain that can improve itself through a voting process by token holders — a concept known as a self-amending blockchain. This design gives Tezos flexibility and enables continuous development without disruptions.

In 2017, Tezos conducted an Initial Coin Offering (ICO), which became one of the largest ICOs of its time, raising over $232 million USD (equivalent to around 65,000 BTC and 361,000 ETH at the time). The event drew significant attention from investors around the world.

However, the ICO’s success was followed by internal drama and conflict, particularly between the founding team and Johann Gevers, then-president of the Tezos Foundation — a non-profit organization based in Switzerland that managed the ICO funds. The dispute delayed the project’s development and launch, causing frustration among investors and leading to lawsuits over transparency and fund management.

Eventually, the issues were resolved after a restructuring within the foundation. The Tezos Foundation later took on a central role in fund management and continued network development. As a result, the Tezos mainnet was officially launched in 2018, restoring confidence among investors and the broader community.

XTZ (Tezos Coin)
The native digital currency of the Tezos network, used for value transfer, paying transaction fees, staking, and voting in the governance system.

Proof-of-Stake (PoS)
A consensus mechanism that consumes less energy than Proof-of-Work (such as Bitcoin). Token holders can stake their coins to help validate transactions and secure the network, earning XTZ as rewards.

Liquid Proof-of-Stake (LPoS)
Tezos’ unique PoS system that allows holders to choose whether to validate transactions themselves (as bakers) or delegate that right to others — while still keeping full ownership of their tokens. This makes the network both flexible and secure.

Baker
A participant who validates transactions and creates new blocks on the Tezos network — similar to miners in PoW systems, but using staked tokens instead of computational power.

Delegator
An XTZ holder who does not validate transactions directly but delegates that right to a baker, earning a share of the staking rewards.

Self-amendment
A mechanism that enables Tezos to upgrade itself without requiring a hard fork. Token holders can vote directly on protocol improvements or changes.

On-chain Governance
The governance system within the Tezos blockchain that allows XTZ holders to participate directly in decisions about network development and proposed projects through on-chain voting.

Formal Verification
A mathematical technique used to verify the correctness of smart contracts, reducing errors, increasing security, and building confidence in real-world use.

Tezos Foundation
A non-profit organization based in Switzerland that manages ICO funds and supports network development, ecosystem growth, and community initiatives for Tezos.

Tezos uses a Liquid Proof-of-Stake (LPoS) system, an improved version of Proof-of-Stake, that allows XTZ holders to participate in the network in multiple ways.

Transaction Validation (Baker)

Those who stake XTZ tokens act as validators, checking and recording transactions into new blocks. This system is secure and far less energy-intensive than Bitcoin mining.

Voting and System Upgrades (Governance)

Token holders can vote on network development, such as protocol improvements or new feature additions. This allows Tezos to upgrade itself without a chain split (self-amending).

Delegation

If you don’t want to be a baker, you can delegate your voting and validation rights to another baker while still earning a share of the staking rewards. This makes it easy for less experienced users to participate and generate income.

Comparison Table: Tezos vs Ethereum vs TRON vs Solana

 

When comparing blockchains like Tezos, Ethereum, TRON, and Solana, clear differences emerge in both technology and usage. Ethereum uses Proof-of-Stake after its upgrade, significantly improving energy efficiency. Solana stands out with Proof-of-History, supporting a very high number of transactions per second. TRON adopts Delegated Proof-of-Stake, offering low transaction fees, while Tezos focuses on Liquid Proof-of-Stake and excels with self-amendment, allowing network upgrades without a hard fork.

In terms of smart contracts, Ethereum dominates with a large number of applications, Solana is growing rapidly, TRON is widely used in online entertainment, and Tezos emphasizes the security of smart contracts. Regarding transaction fees, Solana and TRON are the lowest, Ethereum is higher, and Tezos falls in the middle.

Even with many new blockchain projects emerging, Tezos (XTZ) stands out due to strengths that address issues faced by earlier blockchains, such as:

1. Self-amendment (Upgrades Itself)
   Tezos can improve its protocol without requiring a hard fork. Token holders can vote together to decide the network’s development direction, enabling continuous growth without conflicts.
   
   

2. Liquid Proof-of-Stake (LPoS)
   This mechanism makes participation easy for XTZ holders, whether as Bakers validating transactions themselves or as Delegators who delegate rights to a baker. Everyone can help secure the network and earn rewards.
   
   

3. Low Transaction Fees
   Compared to popular blockchains like Ethereum, which often have high fees, Tezos offers lower transaction costs, making it practical for real-world use such as money transfers or creating NFTs.
   
   

4. Security through Formal Verification
   Tezos supports formal verification, a mathematical technique for checking smart contract correctness. This reduces errors and increases confidence for enterprise-level applications.
   
   

5. On-chain Governance
   All XTZ holders have the right to vote and participate in decisions about the network’s future, unlike other blockchains where most decisions come from the development team.
   
   

6. Diverse Real-world Applications
   Tezos is used in NFT projects, DeFi, and has partnerships with major organizations such as Ubisoft, Red Bull Racing, and some global banks.
   
   

XTZ is not just for speculation; it also plays a key role in the real world, both within the Tezos ecosystem and for business applications. Currently, XTZ is used to power transactions, application development, and participation in various Web3 projects, including:

1. Network Fees (Gas Fee)
   Used to pay for transactions on the Tezos blockchain, such as transferring tokens, trading NFTs, or interacting with smart contracts.

2. Staking / Baking
   XTZ holders can stake their tokens to help validate transactions (baking) and earn rewards. This is similar to earning interest on a deposit, while also contributing to the security of the network.

3. Voting and Governance
   XTZ serves as a voting right for protocol upgrades through Tezos’ on-chain governance, allowing all token holders to participate in shaping the network’s future.

4. NFT and Digital Art Trading
   Tezos is popular among digital artists and collectors on platforms like objkt.com and Kalamint. With lower fees compared to Ethereum, XTZ has become a primary currency for NFT transactions.

5. DeFi and dApps
   XTZ is used in decentralized finance platforms for lending, yield farming, liquidity pools, and as a medium of exchange within decentralized applications.

6. Real-world Business and Partnerships
   Tezos collaborates with numerous major organizations, giving XTZ a wide-ranging real-world role across gaming, sports, and entertainment industries.

1. Although Tezos and XTZ offer strengths such as a flexible blockchain structure and unique on-chain governance, investing in or using XTZ comes with limitations and risks that should be carefully considered:

2. Competition in the Blockchain Market:
   Tezos faces competition from major blockchain networks like Ethereum, Solana, and Avalanche, which have large developer bases, applications, and user communities. Attracting new developers and launching DeFi or NFT projects requires significant time and resources.

3. XTZ Price Volatility:
   Like other cryptocurrencies, XTZ prices are highly volatile, influenced by market conditions, economic factors, and investor interest. This can affect investor confidence and the commercial use of XTZ.

4. Liquidity Limitations:
   Although XTZ is traded on multiple crypto platforms, its liquidity may not be as high as major cryptocurrencies. Large transactions could lead to price swings or delays.

5. Regulatory Risks:
   Cryptocurrency laws and regulations are continuously evolving in many countries. Changes in regulatory frameworks could impact holding, trading, or operating on the Tezos network.

6. Technology and Security Risks:
   Even though Tezos employs formal verification to check smart contract correctness, development errors or security vulnerabilities are still possible, which could affect users’ investments.

The XTZ token is at the heart of the Tezos network. Every function within the system — from transactions and governance voting to participation in the Proof-of-Stake mechanism — relies on XTZ.

Understanding the token’s structure, issuance, and reward system is therefore essential to grasp how XTZ operates and its economic value within the network.

Supply & Issuance

Current Supply: XTZ has no fixed maximum supply (uncapped), but the protocol controls the growth rate of the token.

Circulating Supply: As of May 2024, approximately 1.00 billion XTZ are in circulation.

Inflation Rate: Around 5–6% per year, serving as an incentive reward for network validators (Bakers) to maintain security and participation.

Initial Token Allocation:

• ~79.6% to ICO investors
  
  

• ~10% allocated to the Tezos Foundation
  
  

• ~10% to Dynamic Ledger Solutions (DLS), the project founders
  
  

• ~0.41% to early supporters and contributors
  
  

Staking Rewards

XTZ holders can participate in Tezos’ Proof-of-Stake mechanism in two main ways:

• Baker (Validator): Requires a minimum of around 6,000 XTZ to create blocks and validate transactions (attest), earning rewards in XTZ.
  
  

• Delegator: Token holders who do not act as Bakers themselves can delegate their rights to a Baker and still earn a share of the baking rewards without transferring tokens out of their wallet.
  
  

Tezos (XTZ) Price Outlook for 2025

Analyst perspectives for XTZ in 2025 show both optimism and caution:

• CryptoNews.net estimates a low of $0.475, an average price of $0.85, and a high of $1.42.
  
  

• Cryptopolitan provides similar figures, predicting a low of $0.475 and a high of $1.42.
  
  

• CoinCodex anticipates XTZ will trade between $0.76 and $0.83.
  
  

• CoinMarketCap forecasts a price around $0.77.
  
  

Overall, predictions for XTZ in 2025 vary, with a low near $0.475 and a high around $1.42, reflecting the inherent uncertainty and volatility of the crypto market. Nonetheless, there remains potential for XTZ to stabilize or increase in value over the long term.

For those interested in investing or using Tezos (XTZ), understanding how to buy and store your coins securely is essential. Follow these steps:

How to Buy Tezos (XTZ)

Buying Tezos (XTZ) is straightforward through reputable crypto exchanges. A popular choice is KuCoin Thailand, which offers a secure platform suitable for beginners. The steps are as follows:

1. Create an Account and Complete KYC:
   Sign up for a KuCoin Thailand account and complete the KYC verification to secure your account and enable full transaction functionality.
   
   

2. Deposit Funds:
   Add funds via supported methods, such as fiat transfers or transferring crypto from another wallet into your KuCoin account.
   
   

3. Find XTZ:
   Go to the Spot Market on KuCoin Thailand and search for Tezos (XTZ).
   
   

4. Choose Order Type:
   
   

• Market Order: Buy immediately at the current market price.
  
  
• Limit Order: Set a desired price and wait for the system to match your order.
  
  

     5. Confirm Purchase and Monitor Your Portfolio:
     After the purchase, check your XTZ balance in your wallet and track price movements
     in real time.

XTZ Coin Storage

How to Safely Store Tezos (XTZ)

Even though the Tezos network is highly secure, users are still at risk of hacks or losing their tokens. Key storage methods include:

1. Software Wallet (Hot Wallet)
Hot wallets are connected to the internet, allowing quick and convenient transfers or trading. Examples include:

• Exchange Wallets: KuCoin Wallet
  
  
• Software Wallets: Atomic Wallet, Galleon Wallet

Pros: Convenient for frequent use.
Cons: Higher risk of hacks or platform-related issues.

2. Hardware Wallet (Cold Wallet)
Cold wallets are offline storage devices, such as Ledger Nano S/X or Trezor. Ideal for long-term holding or large amounts of XTZ, as they offer the best protection against online theft.

Rio Protocol Upgrade (May 1, 2025)

Tezos has launched a protocol upgrade called Rio, the 18th iteration of the network. This upgrade focuses on increasing staking flexibility and supporting Layer 2 scalability, which is expected to increase Tezos's appeal in the crypto market.
Information from: https://tezos.com/upgrades

Liquid Staking Launch (August 13, 2025)

Tezos has launched stXTZ, a staking derivative that allows users to participate in DeFi without releasing coins from staking. The launch takes place on Etherlink, Tezos' Layer 2 that supports the Ethereum Virtual Machine (EVM). Users can use stXTZ in various DeFi protocols and simultaneously earn staking rewards.
Information from: https://crypto.news/tag/tezos

What is Tezos and how is it different from Ethereum?

Tezos is a Proof-of-Stake (PoS) blockchain with a unique feature called self-amendment, allowing the protocol to upgrade itself through token holder votes without creating a fork. In contrast, even though Ethereum now uses PoS, upgrades often require hard forks, which can lead to community disputes.

What can XTZ be used for?

XTZ tokens are used for:

• Transaction Fees (Gas Fee): For transferring tokens or executing transactions on the Tezos network.
  
  

• Staking / Baking: Token holders can stake XTZ to validate transactions and create new blocks, a process called baking.
  
  

• Governance / Voting: XTZ holders can vote on network upgrades or development, giving everyone a say in Tezos’ future.
  
  

• DeFi and NFTs: XTZ serves as the main currency for DeFi transactions such as lending, depositing, swapping tokens, and buying or selling NFTs on Tezos-supported platforms.
  
  

Where to buy Tezos?

XTZ is available on many crypto exchanges, with KuCoin Thailand being a popular choice. It offers security, stability, and high liquidity, supporting multiple trading pairs. The platform is user-friendly, suitable for both beginners and experienced investors, allowing quick and secure XTZ portfolio management.

Is Tezos suitable for beginners?

Yes, Tezos is beginner-friendly. To maximize benefits, holders should understand staking, which is a key network feature. XTZ carries moderate risk and is less complex than some DeFi tokens, making it approachable for new investors.

Tezos (XTZ) is a standout blockchain featuring Proof-of-Stake (PoS) technology, designed for high efficiency and lower energy consumption than Proof-of-Work systems. It allows token holders to participate in network security through staking.

What sets Tezos apart is its self-amendment mechanism, enabling the network to upgrade its protocol via token holder votes without requiring a hard fork. This allows Tezos to evolve continuously without conflicts in the network.

With high security, low fees, strong community participation, and continuous adaptability, Tezos is an attractive option for investors seeking medium- to long-term opportunities.

Buy XTZ quickly, safely, and conveniently on KuCoin Thailand — register today and start trading immediately! 

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 ⚠️ Disclaimer: Cryptocurrency and digital token involve high risks; investors may lose all investment money and should study information carefully and make investments according to their own risk profile.

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