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Tezos is a long-running Layer 1 alternative (i.e. the smart contract platforms that emerged after Ethereum). Like Ethereum, Tezos is used to power an array of web3 dApps, DeFi, NFTs and more.
Tezos uses what it calls a liquid Proof-of-Stake consensus mechanism, which operates in a similar fashion to regular PoS systems, but also allows users to loan their token staking rights to others to improve their chances of ‘mining’ the next block and receiving new XTZ. In the Tezos ecosystem, the act of pushing verified blocks to the blockchain is known as ‘baking’.
XTZ is the native token of the Tezos network. It’s used to power dApps and pay for transaction costs, as well as granting governance voting rights to holders.
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