What is Tezos (XTZ)?
Tezos (XTZ) is an open-source proof-of-stake blockchain that upgrades itself through on-chain governance, built for assets and applications. Tezos emphasizes code security and decentralization, and its native token XTZ is used to pay network fees, to stake, and to vote on protocol decisions.
Tezos was first proposed in a 2014 white paper by Arthur and Kathleen Breitman, and the mainnet launched in 2018, according to Tezos Foundation materials. The Tezos mainnet has run without interruption since launch and is known for its technical focus and active community.
How does Tezos self-amendment work?
The most distinctive feature of Tezos is self-amendment through on-chain governance. Tezos stakeholders can create and vote on protocol upgrade proposals, and approved proposals are adopted without splitting the chain into competing forks. According to an official Tezos announcement, the 20th upgrade, Tallinn, activated on January 24, 2026, cutting layer 1 block time to 6 seconds and letting all bakers attest to every block.
Tezos reaches consensus through proof-of-stake, and XTZ holders can run a baker themselves or delegate or stake with a baker to help secure the network and earn rewards. Tezos was also designed with formal verification in mind, which suits smart contracts where correctness matters a great deal.
What is XTZ used for, and what does the ecosystem look like?
XTZ pays transaction fees and the cost of executing smart contracts, and it is locked up for block production, known as baking, and for staking. Because Tezos is a proof-of-stake network, newly issued XTZ is distributed as rewards to bakers and stakers, so the supply is not fixed but changes according to protocol rules.
The Tezos ecosystem includes DeFi, NFT, gaming, and tokenized-asset applications, with native contracts written in Michelson or higher-level languages such as SmartPy and LIGO. Tezos also runs Etherlink, an EVM-compatible layer 2, and according to the official Tezos roadmap, Tezos X, which opened a previewnet in May 2026, aims to unify the Michelson and EVM runtimes on a shared ledger, with mainnet targeted for the third quarter of 2026.
What are the strengths and risks of Tezos?
Commonly cited strengths of Tezos include a long record of upgrades delivered without hard forks, a design that is friendly to formal verification, and a low barrier to participation through delegation and staking. Uninterrupted mainnet operation since the 2018 launch is also frequently noted as evidence of Tezos network stability.
Tezos faces intense competition among smart contract platforms, so attracting developers and users remains an ongoing challenge, and some observers note that on-chain voting can concentrate influence among large holders. Tezos, like all crypto assets, carries risks including technical flaws, regulatory change, and significant volatility; this overview is informational and is not investment advice.
