Tezos

Tezos is an open source smart contracts and blockchain platform designed to facilitate the creation and deployment of decentralised applications (dApps) while focusing on blockchain governance and scalability. Here are the key points to remember about Tezos:

• Chain governance: Tezos stands out for its decentralised governance mechanism, allowing token holders (XTZ) to propose and vote on changes to the protocol, promoting the continuous evolution of the network without hard forks.
• Proof-of-Stake (PoS): The network uses a PoS consensus algorithm called Liquid Proof-of-Stake (LPoS), which allows users to participate in transaction validation and network security via baking (equivalent to staking).
• Self-amending updates: Tezos incorporates a system of automatic updates, where improvements to the protocol are seamlessly integrated after community approval, reducing the risk of community division.
• Security and formalism: The smart contracts programming language, Michelson, is designed to enable formal verification, guaranteeing increased security for applications deployed on the blockchain.
• System and use cases: Tezos is used in a variety of sectors, including decentralised finance (DeFi), NFTs, and institutional applications, thanks to its flexibility and focus on compliance and sustainability.
• Scalability and energy efficiency: Thanks to its PoS model, Tezos offers an energy-efficient alternative to traditional blockchains, while maintaining low transaction fees and high speed of execution.

In summary, Tezos is positioned as an innovative and scalable platform for smart contracts, emphasising participative governance, security and sustainability in the blockchain ecosystem.

Structured analysis of Tezos' (XTZ) strengths in 2025

1. Intelligent and scalable governance
Tezos stands out for its "on-chain" governance mechanism, which allows the community to propose, vote on and adopt updates to the protocol without a hard fork. This capacity for continuous self-improvement ensures that Tezos can adapt quickly to technological and regulatory changes, while maintaining the stability of the network.

2. Regular upgrades and technical innovations
In 2025, Tezos continued a sustained pace of innovation with several major upgrades to the protocol (Seoul, Rio, Quebec, Paris). These upgrades brought:

• Shortened block times (down to 8 seconds), improving transaction speed.
• Simplified and more flexible staking mechanisms, with the ability to withdraw funds at the click of a button.
• The introduction of advanced features for institutional security, such as native multi-signature accounts.
• Scalability improvements thanks to the Data Availability Layer and native support for Smart Rollups.
• Adaptive Issuance to optimise staking economics.

3. Energy efficiency and sustainability
Tezos operates on an energy-efficient Proof-of-Stake (PoS) consensus, making it one of the most environmentally friendly blockchains. This feature attracts many projects concerned about their carbon footprint, particularly in the digital art, NFT and gaming sectors.

4. Rich and growing ecosystem
Tezos is recognised for the diversity and vitality of its ecosystem:

• Growing adoption in NFT, DeFi, gaming and digital art.
• Major partnerships and integrations with institutional players and technology platforms.
• Active global community, with numerous events, hackathons and developer support programmes.

5. Security and reliability
Smart contract security is at the heart of Tezos' design, with a programming language (Michelson) designed for formal verification. This significantly reduces the risk of bugs and flaws, a major advantage for financial and institutional applications.

6. Accessibility and participation
Staking on Tezos is open to all, with no high minimum, and delegation allows XTZ holders to participate in securing the network and collect rewards, even without managing a node themselves.

7. User-centric Web3 vision
Tezos is positioning itself as a key infrastructure for Web3, emphasising decentralised governance, community participation and interoperability. The aim is to build a more open, transparent and user-driven internet.

Conclusion
In 2025, Tezos is establishing itself as a benchmark blockchain thanks to its scalability, security, energy efficiency and rich ecosystem. Its innovative governance and regular updates make it a particularly attractive platform for developers, institutions and users looking for sustainable and scalable blockchain solutions.

Risk of market volatility: Tezos (XTZ) is subject to high volatility, typical of cryptocurrencies. Large price fluctuations are influenced by speculation, limited liquidity and sensitivity to industry announcements. Rapid changes in the market can lead to significant losses for investors.Regulatory risk:Tezos operates in an uncertain regulatory environment. Several jurisdictions are increasing oversight of cryptocurrencies, which could affect the tradability of XTZ or impose restrictions on its use. Investigations or policy changes, particularly in the US and Europe, could impact the value and accessibility of Tezos.Security risk: Although Tezos uses a Proof-of-Stake consensus mechanism and is designed to be self-amendable, vulnerabilities in the code or flaws in smart contracts could be exploited. Past incidents in the crypto ecosystem show that even reputable blockchains can be the target of attacks.Governance risk: Tezos' on-chain governance system, while innovative, may lead to conflicts of interest between stakeholders. Disagreements over proposed amendments or low voter turnout can slow down the protocol's evolution or create uncertainty.Competition risk: Tezos faces intense competition from other programmable blockchains such as Ethereum, Solana or Cardano. The adoption of Tezos depends on its ability to attract developers and projects, which is not guaranteed in a rapidly evolving market.Liquidity risk: The liquidity of XTZ may be limited on certain markets or exchange platforms, which may make it difficult to buy or sell large quantities without impacting the price.Reputation risk: Tezos experienced controversy at its launch, including legal disputes between the founders and the foundation. Although the situation has stabilised, governance or communication issues could damage investor confidence.

Tezos is an open source blockchain platform designed to enable the creation of smart contracts and decentralised applications. The project was initially developed by Arthur Breitman and Kathleen Breitman, who founded Dynamic Ledger Solutions (DLS) to oversee the development of the protocol. The Tezos Foundation, based in Switzerland, is the primary entity responsible for the governance, funding and ongoing development of the Tezos ecosystem. The foundation manages the funds raised during the 2017 ICO and oversees updates to the protocol, in collaboration with the community and various technical partners. The official website, https://tezos.com, provides detailed information about the foundation, the team and current initiatives.

The Tezos project is an open source blockchain designed to enable the creation of smart contracts and decentralised applications. Its initial funding and financial structure have several notable features, detailed below from information available on its official website (tezos.com).

1. Initial Coin Offering (ICO)
The main financing of Tezos was carried out via a public fundraising, called Initial Coin Offering (ICO), which took place from 1 to 14 July 2017. This raised around $232 million in bitcoin (BTC) and ethers (ETH), making it one of the largest ICOs of its time. The funds were raised by the Tezos Foundation, an independent entity based in Switzerland, responsible for managing the project's financial resources and supporting its long-term development.

2. Funding structure and management of funds
The Tezos Foundation holds and manages the funds arising from the ICO. Its mission is to fund the development of the protocol, support the community, encourage research and innovation, and promote the adoption of Tezos. The foundation regularly publishes transparency reports detailing the use of funds, investments made, as well as grants awarded to third-party projects or community initiatives.

3. Diversification and financial strategy
After the ICO, the foundation implemented a policy of diversifying its assets in order to limit the risks associated with the volatility of cryptocurrencies. Funds are spread across different asset classes, including traditional currencies (fiat), bonds, equities, as well as investments in the blockchain ecosystem. This strategy aims to ensure the financial sustainability of the project, regardless of fluctuations in the cryptocurrency market.

4. Transparency and governance
The Tezos Foundation is committed to financial transparency. It publishes annual audits by independent firms, as well as periodic reports on the state of its finances and the allocation of resources. The project's governance is based on a system of on-chain governance, enabling the community to propose and approve changes to the protocol, which promotes decentralised and participative management of resources.

5. Additional funding
In addition to the funds from the ICO, Tezos benefits from additional funding in the form of partnerships, grants and investments from institutional players or funds specialising in blockchain. These contributions are helping to strengthen the project's ability to innovate and expand internationally.

To sum up, the Tezos project was mainly financed by a major ICO, the funds for which are managed by an independent foundation according to principles of diversification, transparency and participative governance. This solid financial structure enables Tezos to support its ongoing development and ensure its long-term viability.