While almost everybody has heard about Bitcoin, Tezos is almost unknown to non-specialists. What is the difference between Bitcoin and Tezos? Does XTZ any perspectives in the rapidly growing market of cryptocurrency? Is it worth investing in Tezos and why? To reply to these questions, let us have a closer look at both cryptocurrencies.
Bitcoin
Bitcoin was introduced to the world in 2009 when somebody Satoshi Nakamoto released the Bitcoin whitepaper. At that time, the first Bitcoin was created.
Like any other cryptocurrency, Bitcoin is nothing else but a code, a string of symbols registered on the blockchain. This string of symbols can be bought, sold, exchanged, you can pay with it for goods and services. In other words, you can use it as money. The main intent of Bitcoin creators was to create virtual money that can be used everywhere, by anybody, without any need for any exchanges. At those times, it was difficult to believe that one might want, for example, to exchange BTC to XTZ or any other crypto-coin.
Bitcoin is decentralized. It means that it isn’t regulated by any authority.
Every time a coin is sold or bought, some symbols in the string are changed, a new coin is created and registered on the blockchain.
For now, Bitcoin is the most used cryptocurrency in the world. It is also the most expensive coin. The current Bitcoin prices can be checked in a live chart on https://letsexchange.io/.
Tezos, or XTZ
Tezos was proposed in its whitepaper which was released in 2014. The coin came into existence in 2018, therefore, it is one of the most recent cryptocurrencies.
Tezos runs on its own network powered by its own token XTZ. The network can execute smart contracts. In this regard, it is more similar to Ethereum rather than to Bitcoin which cannot execute anything and serves purely as an alternative to fiat money.
Tezos works based on a special on-chain governance model. It allows the protocol to amend itself when changes are needed and the majority of users are for the changes. Thus, Tezos cannot have any hard forks. It also makes it different from Bitcoin. With its price slightly higher than 6 USD per coin, Tezos also differs pretty much from Bitcoin.
To Sum up
Therefore, when we compare Bitcoin with Tezos, we can say that the main common feature of both coins is their decentralization. Other than that, they differ one from another immensely.
- While Bitcoin serves as money, the Tezos network is able to support smart contracts.
- Bitcoin`s protocol cannot amend itself which leads to hard forks. Tezos protocol can amend itself when modifications are needed and voted for by the majority of users. Thus, hard forks in the Tezos network aren’t needed.
- Bitcoin is one of the oldest cryptocurrencies while Tezos is among the most recent crypto-projects.
- The prices of both coins are too different to be compared at all. While Bitcoin`s price has settled at around 56.000 USD, the price of one Tezos is fluctuating between 6 and 7 USD.
Does Tezos have any potential? Well, very likely because it offers some new ideas. Considering that its main rival is Ethereum, the future of Tezos is still vague.