What is Tezos and Why We Chose It to Build Lyzi

1. What is Tezos?​

Tezos is an open-source, decentralized blockchain network that supports smart contracts and provides a platform for creating decentralized applications (DApps). It was launched in 2018 following one of the most successful initial coin offerings (ICOs) of all time, which raised over $232 million. But it’s not just its successful funding that makes Tezos remarkable; it is the technology and philosophy underpinning the network that truly sets it apart.

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The self-amending ledger

The heart of Tezos lies in its self-amending ledger. Unlike other blockchains, where upgrades typically require hard forks (which can split the community and the currency), Tezos can upgrade itself without the need for a fork. This is achieved through an on-chain governance model, where stakeholders vote on protocol upgrade proposals.

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Key features of Tezos:

• On-chain governance: The Tezos community, primarily token holders, can propose, vote on, and implement protocol changes. This democratic approach ensures that the network evolves according to the needs of its users and avoids the divisive “hard forks.”

  
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• Formal verification: Tezos places a strong emphasis on security and reliability. It supports formal verification, a mathematical process used to prove the correctness of the code governing transactions. This makes Tezos particularly appealing for high-stakes applications in financial services and other sectors where security is paramount.

  
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• Liquid Proof-of-Stake (LPoS): Tezos operates on a Liquid Proof-of-Stake consensus mechanism. Unlike proof-of-work (used by networks such as Bitcoin), which requires significant computational power, LPoS allows stakeholders to participate in network governance and earn rewards with a much lower energy footprint. This makes Tezos not only more environmentally friendly but also more inclusive.

  
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• Smart contracts and DApps: Tezos is designed to facilitate the creation of smart contracts and dApps. Its ability to self-upgrade can incorporate future advancements in blockchain technology, allowing dApps built on Tezos to stay at the cutting edge.

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Tezos in the Market

Tezos has carved out a niche in the crowded blockchain space by focusing on adaptability and security. It has been adopted for various uses, from gaming to finance. For instance, Société Générale, a major French bank, chose Tezos for its central bank digital currency experiments. The platform’s flexibility and robust governance model make it a standout choice for both institutional and individual users.

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2. Why We Chose Tezos: High TPS Rate – Scalability at Its Best

Tezos’ impressive capability of one million TPS, supported by innovative Layer 1 and Layer 2 solutions, ensures scalability. This is crucial for us as we handle a large volume of transactions, requiring speed and efficiency.

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Standing Out from the Crowd

Compared to other blockchains like Ethereum and Bitcoin, Tezos’ scalability is a game-changer. Ethereum often struggles with high gas fees and network congestion, while Bitcoin’s PoW mechanism is less efficient than Tezos’ LPoS.

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Tezos’ Fee Structure: Maximizing Economic Viability

Tezos’ dynamic fee structure ensures competitive pricing. For Lyzi, this translates into reduced operational costs and, consequently, more attractive prices for our users.

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Encouraging User Adoption

Affordable transaction fees are crucial for user adoption and retention. By leveraging Tezos’ efficient fee system, we make crypto payments accessible and appealing to a broader audience.

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Security and Stability: The Foundation of Trust

Tezos’s unmatched security and stability, thanks to its unique combination of features, inspire confidence and reduce risks. This is essential for maintaining user trust in our platform.

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Building a Reliable Ecosystem

The reliability and dependability of our platform are enhanced by Tezos’ robust security features, ensuring a safe environment for our users’ financial transactions.

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3. Impact on the Real World: Enhancing User Experience

Tezos enables us to handle a wide range of transactions, from small daily payments to large commercial transfers, efficiently and securely. This versatility is crucial for providing a seamless user experience.

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Expanding Our Reach

Our use of Tezos allows us to tap into various markets and offer an efficient and accessible payment solution. This is crucial for our growth and the expansion of cryptocurrency payment systems.

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Tezos vs. Its Competitors: A Clear Advantage

Comparing Tezos with other blockchain platforms like Ethereum and Bitcoin highlights its relevance for Lyzi. Tezos offers a more balanced solution with its efficient and eco-friendly approach.

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At the forefront of the cryptocurrency payment industry

By leveraging Tezos’ technological strengths, we position ourselves as a leader in the cryptocurrency payments sector, offering faster, more affordable, and more secure services compared to many competitors.

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Conclusion

Our decision to rely on Tezos aligns perfectly with our mission to provide high-quality cryptocurrency payment solutions. The combination of high TPS, low transaction fees, and unparalleled security and stability makes Tezos the ideal platform to meet our needs.

As we navigate the rapidly evolving landscape of digital finance, our partnership with Tezos allows us to set new standards for efficiency, reliability, and user satisfaction in cryptocurrency transactions.

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