Tezos
Candlefocus EditorThe governance of the Tezos network is based on economic stakes. Instead of using miners to validate transactions, the network uses a proof-of-stake consensus mechanism. This mechanism allows users to stake their tez to validate transactions, without the need for expensive and energy-consuming bitcoin mining. The incentive for verifying transactions is the potential reward of a larger amount of tez.
The Tezos network underwent a successful Initial Coin Offering (ICO) in July 2018, raising over $235 million worth of tez. Following this, Tezos was mired in a power struggle between the project’s founders and a third-party auditor. This led to a plethora of lawsuits, tarnishing the reputation of the Tezos network.
In spite of this, the price of a tez rose to above $8 in October 2021, before declining to below $2 by June 2022. This represented a significant spike for the tez token and shows that the network has resilience, despite the legal issues.
Ultimately, Tezos is a blockchain network with a focus on governance, staking, and decentralization. It uses a proof-of-stake transactional validation system and is self-correcting, meaning it can be upgraded without the need for forks. Although the project has had to deal with legal issues, the price of its native token, tez, has remained resilient.