Tezos Crypto Should Benefit Now That the Breitmans Are Helping Its Focus
InvestorPlace - Stock Market News, Stock Advice & Trading Tips Tezos crypto may keep rising now that its founders are back in the saddle. Tezos cr...
Tezos (CCC:XTZ-USD) is a blockchain network that like Ethereum (CCC:ETH-USD) is focused on smart contracts and decentralized apps (Dapps). It is known as an early second-generation blockchain that was designed to work as a proof-of-stake blockchain validation protocol. Its future seems brighter now that its original founders, Arthur and Kathleen Breitman are back in helping its development.
Tezos crypto was one of the first blockchains after Bitcoin (CCC:BTC-USD), which uses a mining mechanism called proof-of-work. The Breitmans felt that Bitcoin couldn’t adapt because of its difficult governance rules and they developed Tezos to overcome this.
Validating transactions (i.e., the process of checking and confirming transactions on the blockchain) with Tezos is known as “baking.” The baking operation is run by bakers who stake some of their XTZ tokens to do the validation and are rewarded with extra tokens.
The Return of the Breitmans
But the truly unique aspect of XTZ is its governance. All token holders can vote on changes in the Tezos blockchain technology. According to Decrypt, this means token holders can enact a change in the Tezos blockchain without splitting the currency in what is known as a hard fork.
This was one of the major changes to blockchain that the Breitmans brought with Tezos. Now that they are back, according to Decrypt magazine, the blockchain Tezos has a chance for a “second act.”
Apparently, after they originally developed the crypto, they became less involved once the Tezos Foundation took over its promotion after 2014. But it didn’t work out so well then. Ethereum and other proof-of-stake cryptos started to rise in popularity, especially as they focused on smart contracts and Dapps.
In 2017 an initial coin offering raised $232 million, most of which went into the Foundation. However, this sparked a legal fight between the Breitmans and the President of the Foundation. After three years, the legal battle was settled resulting in payments to various parties, according to Reuters.
Now that the Breitmans are back in charge they have helped the blockchain function more as they originally envisioned. A recent interview in Forbes magazine with Kathleen Breitman highlights how they expect to focus on the blockchain.
One change is a new and somewhat belated focus on smart contracts and Defi in what the promoters call “liquidity baking.” According to Decrypt, this is where users deploy smart contracts and earn Tezos token XTZ if they put Tezos or a synthetic version of Bitcoin in a liquidity pool.
Where This Leaves Investors In Tezos Crypto
So far this year, XYZ is up quite significantly. For example, it ended last year at roughly $2 per Tezos crypto token. So at today’s price of $6.8895 per token, the performance year-to-date is up an amazing 243%.
However, this is after a wild ride during the year. For example, it reached a peak price of $7.536 on May 5 and subsequently cratered to $2.1533 on July 19. However, since then, it has surged to $6.8995 in the space of just over two months.
This shows that a cryptocurrency benefits from the actions of its founders. However, there are still issues that Decrypt magazine has pointed out that still plague the rise of Tezos. For example, the article says that there are not enough developers working on the platform blockchain technology. In addition, apparently, Tezos is in a coding language that is not that common.
So the Foundation still has a good amount of work to do. But it looks like the Breitmans are on top of these issues and the new focus that the blockchain is taking. That can augur well for the future of Tezos crypto.
On the date of publication, Mark R. Hake owns a long position in Bitcoin and Ethereum but did not own any other security mentioned in the article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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