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December 19, 2023

What Is Tezos And Why We Chose It To Build Lyzi

1. What is Tezos?

Tezos is a decentralized, open-source blockchain network that supports smart contracts and offers a platform for building decentralized applications (dApps). It was launched in 2018 after one of the most successful initial coin offerings (ICOs) ever, raising over $232 million. But it's not just its successful funding that makes Tezos noteworthy; it's the technology and philosophy underpinning the network that truly sets it apart.

The Self-Amending Ledger

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

Key Features of Tezos:

  1. On-Chain Governance: The Tezos community, primarily token holders, can propose, vote on, and implement changes to the protocol. This democratic approach ensures that the network evolves in response to its users' needs and avoids divisive hard forks.
  2. 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 attractive for high-stakes applications in financial services and other sectors where security is paramount.
  3. Liquid Proof-of-Stake (LPoS): Tezos operates on a liquid proof-of-stake consensus mechanism. In contrast to proof-of-work (used by networks like Bitcoin), which requires significant computational power, LPoS allows stakeholders to participate in network governance and earn rewards with a much lower energy footprint. This not only makes Tezos more environmentally friendly but also more inclusive.
  4. Smart Contracts and dApps: Tezos is designed to facilitate the creation of smart contracts and dApps. Its ability to update itself can incorporate future advancements in blockchain technology, keeping dApps built on Tezos at the cutting edge.

Tezos in the Market

Tezos has carved a niche in the crowded blockchain space by focusing on adaptability and security. It's 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 compelling choice for institutional and individual users alike.

2. Why Whe Chose Tezos: High TPS: Scalability at Its Best

Tezos' impressive 1 million TPS capability, bolstered by innovative layer 1 and 2 solutions, ensures scalability. This is critical for us as we handle a substantial volume of transactions, requiring speed and efficiency.

Standing Out from the Crowd

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

Tezos' Fee Structure: Maximizing Economic Viability

Tezos' dynamic fee structure ensures competitive pricing. For us at Lyzi, this translates to lower operational costs and, consequently, more attractive pricing for our users.

Driving User Adoption

Affordable transaction fees are key to user adoption and retention. By leveraging Tezos' efficient fee system, we're making crypto payments accessible and appealing to a broader audience.

Security and Stability: The Foundation of Trust

The unmatched security and stability of Tezos, thanks to its unique combination of features, instills trust and reduces risk. This is paramount for maintaining user confidence in our platform.

Building a Reliable Ecosystem

Our platform's reliability and trustworthiness are enhanced by Tezos' robust security features, ensuring a safe environment for our users' financial transactions.

3. Real-World Impact: Enhancing User Experience

Tezos enables us to handle a wide range of transactions, from small everyday payments to large business transfers, efficiently and securely. This versatility is key to providing a seamless user experience.

Expanding Our Reach

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

Tezos vs. Competitors: A Clear Advantage

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

Leading the Crypto Payment Industry

By harnessing Tezos' technological strengths, we're establishing ourselves as a frontrunner in the crypto payment industry, offering services that are faster, more affordable, and more secure than many competitors.

Conclusion

Our decision to build on Tezos aligns perfectly with our mission to deliver superior crypto payment solutions. Tezos' blend of high TPS, low transaction fees, and unparalleled security and stability makes it the ideal platform for our needs. As we navigate the evolving digital finance landscape, our partnership with Tezos positions us to set new benchmarks in efficiency, reliability, and user satisfaction in crypto transactions.

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