Published on:

April 26, 2023
Unlocking the Potential of Tezos: A Deep Dive into its Unique Features
tezos blog


The world of blockchain promises to revolutionize the way we interact with digital systems and conduct businesses. It promises to increase productivity, remove intermediaries and also optimize costs. However, not all blockchains are created equal. Among the various protocols – each with their unique features, one might get confused as to which protocol would be the best fit to resolve their enterprise challenges and help them in their operations. For enterprises looking for a business blockchain protocol that continually updates itself to deliver the latest feature enhancements and deliver novel and new features within its unique design, should turn to Tezos.

Tezos is truly special – it stands apart from existing networks for its unique self-amending feature and core principles that reward collaboration and correctness over competition. In this blog post, we’ll explore what makes Tezos so different, why it has the potential to be a game-changer in the space of web3 technology and decentralized application development, and how developers can tap into its features to build innovative solutions.

Introduction to Tezos

Tezos blockchain provides solutions to thwart barriers to adoption for assets and innovative activities backed by a community of developers and validators. Tezos well-thought-out total cost of ownership and open participation promote collaborative workflows. Tezos smart contracts ensure maximum security.

Tezos has long been recognized for its innovative approach to blockchain technology, pioneering the proof-of-stake consensus algorithm over Bitcoin’s more traditional proof-of-work. But instead of resting on this achievement, Tezos is constantly evolving and building upon itself so what makes it truly unique in the world of decentralized applications? Tezos is blazing its own path in the cryptocurrency world, going beyond Proof-of-Stake protocols adopted by other emerging networks. What can Tezos offer that competitors cannot?   From digital asset issuance to protocol upgrades powered by staking rewards, discover why Tezos stands out from other smart contract platforms!

Overview of Tezos

In 2014, the innovative vision of Arthur and Kathleen Breitman was unveiled in a position paper written under their pseudonym L.M. Goodman – heralding an entirely new cryptocurrency platform: Tezos! The official white paper outlined this ground-breaking idea; XTZ is at its core, powering smart contracts for users to build on the blockchain with active governance features that give token holders a voice unlike any other crypto project before it.

XTZ sparks an inflationary phenomenon with a fixed issuance of about 5.51 and an uncapped token supply. This drives the value of the underlying asset, since more XTZ gains value as less XTZ is circulating. This mechanism rewards validators (also known as miners) that confirm transactions and penalizes them (known as miscreants) that act maliciously. Both penalties and rewards are paid in XTZ, which is the underlying asset fuelling the boom. Rewards and fines are paid in XTZ, making the total cryptocurrency supply increase.

Striking the perfect balance between being managed by an individual entity and a collective community, this platform harnesses the power of decentralization to give everybody access. Developed with open-source support from every corner of its network, it’s a pioneering force leveraging modern technology for unprecedented connection and collaboration. In conjunction with the launch of Tezos Coin, a subsidiary of the Tezos Foundation was formed to help the development of Tezos and ensure the community’s continued access to the tool. Through its community development and stewardship, the Tezos Foundation seeks to maintain a footprint of Tezos as a unique blockchain that operates in a similar fashion but works little differently from other blockchains.

Tezos blockchain addresses technical challenges that might inhibit asset and activity development supported by a diverse community of developers and validators. Decentralization strategies built into Tezos permit timely and powerful upgrades. Tezos smart contract validation can ensure security. 

What makes Tezos different? – An overview of its unique features 

Tezos is a platform for issuing new assets to form decentralized applications (dapps). The project quickly rose to the top of its class, as one of the few ventures using a proof-of-stake consensus algorithm rather than Bitcoin’s traditionally implemented proof-of-work. This marked it out from other blockchain initiatives and earned it well deserved recognition. Despite the latest developments in projects such as Solana and Cardano using proof of stake, and Ethereum moving from proof of work (PoS) to proof of stake (POS), Tezos continues to develop other aspects of its platform.

What sets Tezos apart and makes it unique than the rest of blockchains can be concisely put in three chief points:

Energy efficiency:

The Tezos blockchain’s low energy consumption and its environmentally-conscious architecture make it quite different from other blockchain platforms. The use of the Proof-of-Stake consensus algorithm brings down the net energy consumption. The independent report conducted by PwC claims that the Tezos network consumes approximately 2.4 gigabytes of CO 2 eq. per unit of gas and approximately 2.5 gigabytes of CO 2 eq. per transaction – an annual carbon footprint and hence approximates the average footprint of 17 World citizens. Hence, put in nutshell, the Tezos network demonstrates the equivalent carbon footprint as that of 17 people. In comparison to this network, Ethereum current consumption stands at around 79.67kg of CO2 per transaction, which is far greater or approximately the same carbon footprint as the entire country of Ireland. 

Tezos developers continue working to further improve the platform’s energy usage and transaction rate to show that a growing ecosystem will not get affected with the platform’s increased growth and enhanced productivity. There has been a consistent effort on part of the developers to optimize the platform’s energy consumption and bring it even lower. The platform’s transaction efficiency has been enhanced by over 70% since its launch and despite the growth of its ecosystem.

Decentralized finance (DeFi), exchanges, and applications have flocked to the low-energy Tezos blockchain. Most notably, Non-fungible tokens (NFTs) are thriving on this platform – from existing marketplaces like Rarible integrating with it all the way up to “OneOf”, a new NFT project built exclusively for Tezos.

Baking rewards

Tezos uses baking to verify transactions rather than staking. Staking is a technique for blockchains that use Proof-of-Stake as verification. Baking on Tezos reaches the same result by allowing for issuance of tokens, called XTZ, by the owners, who can delegate them to so-called bakers. By allocating their XTZ to bakers, Tezos community members are ensuring an efficient and secure network utilizing the power of on-chain governance. Every baker is rewarded for validating transactions thanks to this collaboration.

Tezos baking blockchain technique differs from the kind of delegated proof-of-stake (DPoS) blockchain used at the EOS blockchain. It also differs from Tron’s DPoS, as well as Tezos protocol is also based on delegated voting. In traditional DPoS, representatives must act in a representative capacity in order for consensus to be reached.

Tezos’s delegated proof-of-stake (DPoS) process, traditionally, requires the blockchain to reach consensus before delegation can occur. In contrast to traditional DPoS, Tezos used this structure for its baking system. Liquid staking is the simplest method for interacting on the Tezos ecosystem, but it is not a requirement for consensus. The Tezos platform is a revolutionary new way of leveraging the power of staking, offering unprecedented liquidity and flexibility. This totally unique method has aptly been dubbed ‘liquid staking’, distinguishing it from traditional consensus algorithms in one remarkable stroke!

Forkless upgrades

Tezos released its Tenderbake upgrade in April, after which the Tezos blockchain upgraded rapidly with the Jakarta release in August of this year. Beginning in April of 2019, Tezos’s Tenderbake and Jakarta upgrades, among many others, were a success without the need for the previous to be reverted.

Tezos has an advantage compared to other blockchains because it can upgrade without having to interrupt services to Tezos users. If upgrades are required to other blockchains, like Ethereum, hard forks must be used. Block splitting, or hard forking, essentially removes blockchain into two different versions. A broken chain creates a blockchain incompatible or invalid. Developing developers or node operators on new platforms like Tezos must make the transition without obtaining less or losing funding or being left behind. Tezos’s built-in upgrade procedure makes the customer experience seamless for bakers and developers with no interruptions.

If the Tezos blockchain community approves the upgrade proposal, an upgrade will be executed on the blockchain. During that time, a new testnet will be set up so the change can be safely tested. After the upgrade is deemed stable on the testnet, it will then be expanded to include the main Tezos blockchain.

In a nutshell, Tezos does not require any upgrade without a fork, allowing developers and users to continue uninterrupted. Tezos does not require a full update as the former status quo changes. In the event of the forked agenda, developers and users will have to partially resume their activity.

Advantages and Disadvantages of Tezos

Before going deeper into comparison of Tezos with other protocols and assessing if these are better than Etheruem or others, we also need to assess the pros and cons of Tezos.


Tezos uses the Proof-of-Stake consensus mechanism, within which individuals provide only the secret computational resources needed for the system to continue working. It is economical since other blockchains utilize PoW and others make use of PoS. Tezos blockchain allows anyone to participate in the consensus mechanism, and rewards them for their contributions to keep up with the stability and security of the network.

Along with other blockchains, it can be used to create contracts and develop dapps. Michelson, Tezos’ native smart contract language, is making a huge impact in the world of safety-critical industries: from aeronautics to nuclear energy and beyond! Its formal verification tool allows for complete confidence in its secure applications.

Tezos aims to provide the safety as well as the correctness required for use by financial assets and also other high-value use cases.

Tezos’s network design is modular and possesses a formal upgrade process. Or we can explain the system’s self-amendment in a little more detail. It allows the big day network both to propose and adopt technological advances as they are created. It provides a formal and systematic procedure for network participation in protocol changes.


Tezos is notorious for having a prolonged waiting time for issuing tokens, which can lead to some earnings being missed. Relevant entities, such as investors and developers, particularly invest in XTZ tokens, yet they are not so interested in the Tezos system compared with what certain mainstream cryptocurrencies are used.   Unlike Tezos, other blockchains must implement token issuance at their own discretion due to backlog and other developments shaping the network.


The Tezos protocol is distinct from other blockchains in that it is designed to be resilient and incorporate the most advantageous features of other blockchains. This makes it possible for the protocol to remain robust and up-to-date with the latest technological advancements. Tezos’ approach has caused it to encounter a lot of resistance during its development, but things are now improving and is now a powerful platform in terms of consensus mechanism, smart contract safety, and self-upgrades. Tezos’ community has a foundation that hopes to develop its protocol and all the systems around it. Due to its evident advantages, Tezos has caught the eye of the crypto world as an exemplary chain for transactions. 

Partner with Zeeve for Blockchain-Integrated Dapp Development 

At Zeeve, we make it easy for web3 developers and enterprises to connect with blockchains. Our reliable and secure web3 infrastructure platform allows you to deploy Tezos nodes, both developer and validator, and get secure API endpoints for blazingly fast connection with Tezos.

With Zeeve, you can deploy the Tezos network with ease. Choose from a fully managed Tezos node service or bring your own cloud and use Zeeve for deployment, monitoring, and management. We offer support for all major cloud providers.Set up your secure Tezos node quickly and easily with the help of flexible APIs, powerful tools, and a ready set of libraries, all accessible through a simple control panel.

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Zeeve team