Tezos

Tezos (XTZ) is an open-source Layer 1 blockchain that supports smart contracts and decentralised applications. The network is best known for its on-chain governance system, which allows protocol upgrades to be proposed, voted on and adopted directly by token holders without requiring contentious hard forks.

The chain uses a liquid proof-of-stake consensus mechanism in which XTZ holders can either run a baker — the Tezos term for a validator — or delegate their stake to one. Delegating preserves custody of the underlying tokens while allowing holders to participate in block production rewards. This design lowers the barrier to participation and contributes to the energy efficiency of the network.

Tezos supports a developer environment built around formally verifiable smart contracts written in Michelson and higher-level languages such as SmartPy and LIGO. The ecosystem includes applications across decentralised finance, digital art and enterprise tokenisation. Within the broader landscape, Tezos sits among proof-of-stake networks that emphasise governance flexibility and formal verification, distinguishing themselves through process design as much as raw throughput.

Self-amending proof-of-stake networks emphasise on-chain governance, formal verification and energy-efficient consensus mechanisms. Tezos sits within this category, alongside other chains where holders coordinate protocol upgrades through structured onchain voting rather than off-chain social coordination. Readers tracking how governance frameworks evolve in this segment can explore broader trends across crypto and Web3.