Tezos is one of the most widely used blockchains for non-fungible tokens (NFTs). Recently, there was a marked increase in concern about the environmental impacts of NFTs and blockchain technologies. Tezos represents a greener alternative than most and because of that, the marketplace has seen a significant increase in popularity as the non-fungible ecosystem expanded.
Integrating into new blockchains or NFT ecosystems like this one isn’t easy. However, this guide will help you to understand the Tezos ecosystem and how to participate. We will be taking a deeper dive into Tezos crypto and the NFTs and explaining how they work. Finally, we will show you how to make the most of this new, exciting world.
Introducing the Tezos Blockchain
Tezos was established in 2017 by Kathleen and Arthur Breitman. It is an open-source platform for assets and apps. It is similar to other blockchains because it allows you to create smart contracts as well as decentralized applications.
Tezos native cryptocurrency is XTZ. Despite its popularity as an NFT platform, Tezos ranks 50th in terms of market capitalization. Despite its lack of market prominence, the blockchain makes up for it with innovation.
The Tezos blockchain’s ability to modify itself is one of its most interesting and unique features. It can also improve its protocol through a formalized process, which many blockchains lack. Because of this, many decisions are made by a small group that is then imposed upon the entire ecosystem.
Tezos offers on-chain mechanisms that allow for the selection, testing, activation, and approval of the protocol. These features, combined with the fact that Tezos has incentivized developers to create DApps using the platform since its inception, have made the blockchain a leader in operability. It’s able to reach consensus quickly and scale rapidly while remaining reliable and safe.
How Does Tezos Work?
Tezos uses a proof-of-stake (PoS) as opposed to the proof-of-work (PoW) mechanisms used by Ethereum and other blockchains. This is the source of Tezos’s economic and ecological selling points.
PoW is a game that requires computers to work together to solve complicated puzzles and add transactions to the blockchain. Blockchains that use PoW require a lot more computer power to work.
PoS allows users to stake a portion of their cryptocurrency to have a chance to be selected as a block validator. This mechanism rewards loyalty and reduces the amount of computational work required to verify transactions and blocks on the blockchain.
Buying and Selling Tezos Crypto
If you want to trade XTZ, you need to own a Tezos wallet. Although hardware wallets, such as Trezor and Ledger, are still solid and secure options for storing crypto, Temple or Kukai wallet remain the most popular wallets to trade crypto and NFTs on Tezos. They are also much easier to set up than other NFT wallets.
There are also many options for purchasing Tezos crypto. Although XTZ isn’t the most widely traded crypto, it can still be bought and sold on almost every major centralized or decentralized exchange. Decentralized exchanges work in the same way as centralized exchanges, but are distributed over a network of computers rather than a central server.
However, you can also purchase Tezos through crypto brokers. These centralized providers act as intermediaries between users and cryptocurrency markets to facilitate trades. Users are not able to trade with each other on the basis of current market prices and the broker sets the price.
Making and Minting Tezos NFTs
The Tezos blockchain can be used to mint NFTs in a similar way as Ethereum or Solana. You will need a wallet to start, as is the case for other blockchains. To cover transaction fees and minting costs, you will need to deposit at most a few dollars of the native blockchain crypto, XTZ.
Tezos fees, while more expensive than the Ethereum blockchain, are not something to be concerned about. There is no doubt that the cost fluctuates.
It is important to decide what type of NFT you want to mint, which will determine the best place to mint it. This part is easy and intuitive. It is also important to decide if you want to make a one-of-one or multiple copies of the same NFT.
Bottom Line
Now that you know a little more about Tezos, you can decide whether you want to purchase it. Keep in mind the things we discussed in this blog post before making your decision. With careful research and planning, buying Tezos can be a great way to invest in cryptocurrency.
