Buy Tezos (XTZ)

Yes, you can buy XTZ with PayPal at Anycoin Direct. You can also pay with GiroPay, VISA, MasterCard, SEPA, Sofort and EPS bank transfers.

The PayPal platform is simple and fast. It is very easy to carry out transactions with just a few clicks. If you want to buy XTZ with PayPal, you don't have to enter your bank details every time. Therefore, money transfers with PayPal are completed within a few moments. Furthermore, PayPal has been around for 25 years and is one of the largest payment methods in the world. Anycoin Direct allows you to buy XTZ with PayPal.

No. It is not possible to deposit XTZ directly into your personal PayPal wallet. 

Yes, when you buy XTZ you can choose to send them to your own wallet. Alternatively, you can choose to have your coins managed by us; we will then store your XTZ securely in the Anycoin Vault.

The ability of Tezos to "heal" itself is due to its modular architecture. The Tezos whitepaper shows how the layer-1 blockchain performs the basic tasks of a blockchain network in separate components.

Tezos defines three different main components:

1. The network protocol detects blocks and spreads transactions

2. The transaction protocol defines what makes a transaction valid

3. The consensus protocol forms a consensus on a unique chain

The whole thing is somewhat reminiscent of Ethereum 2.0, since also there the actual network is abstracted into different layers.

• Data availability layer (data provision layer)

• Consensus Layer

• Execution Layer

Tezos was ahead of its time

The three blockchain components defined in the Tezos white paper are similar to the modular principle of Ethereum. The network protocol provides the Tezos nodes with the necessary data to calculate blocks and participate in the consensus. The consensus protocol performs a formal voting process to determine the correct order of transactions and the transaction protocol is responsible for the execution of smart contracts.

By abstracting these functions into separate layers, Tezos complies with the modular approach, which aims for a clear separation of functions, which can lead to several advantages, such as

• Focused optimisation: Each level can be optimised independently of the others. For example, improvements to the consensus algorithm do not necessarily require changes to the network level.

• Easier upgrades: Protocol upgrades can be implemented in a more controlled and less disruptive way. For example, it is possible to upgrade the transaction layer to enable more complex smart contracts without changing the consensus mechanism.

• Improved security: By separating the consensus mechanism from the transaction execution, the risk of cascading errors is reduced. Problems in one layer can be contained without affecting the entire system.

• Specialisation: Developers can specialise in a particular level without having to have expertise in the other levels, which can accelerate development and innovation within that level.

Tezos' architecture reflects a thoughtful approach to blockchain design that recognises the need for robustness and flexibility as the technology and its applications evolve.

As already mentioned, the protocol layers are separate from each other. In the following, we take a closer look at the individual components that make up the Tezos blockchain as a whole.

• The shell (system software)
  The shell consists of blockchain elements that allow nodes to transfer the chain's data to new nodes, as well as the versioned state of the ledger, including a layer for peer-to-peer connections, the disk storage and a distributed database that abstracts the retrieval and replication of new blockchain data to the validator. This abstraction is necessary to separate the processes in the shell from the protocol layer.

• Protocol Layer
  The protocol layer comprises the so-called "self-correcting properties" of Tezos, which are possible without affecting the underlying network and consensus layers. Note that the protocol layer can only see one blockchain, namely the consensus-accepted linear sequence of the Tezos blockchain. As the Tezos blockchain has never had a hard fork, this linear sequence can be traced back to the Genesis block. The tasks of the protocol layer include administrative processes such as the interpretation of transactions and the processing of smart contracts.

• The RPC layer
  For the sake of simplicity, it is sufficient to know that the RPC layer is part of the node infrastructure that enables third-party applications to interact with the node.
   The RPC layer establishes the connection between the user and the node network.

• Modular architecture
  As the core functions of Tezos are abstracted from each other, the economic protocol of the chain can be supplemented by a coordination procedure within the chain. For example, the processes within the chain could change by switching between different protocol layers without affecting the underlying processes.

The Tezos blockchain is secured using a Delegated Proof of Stake consensus process. In the Tezos documentation, this consensus process is referred to as Liquid Proof of Stake. However, it is important to understand that the definition of Liquid Proof of Stake has evolved over the last decade and now refers to the creation of artificial liquidity through the minting of synthetic assets tied to one's stake.

The Tezos network does not produce "wrapped assets" or synthetic assets. Nevertheless, XTZ token holders can delegate their funds to other validators, known in the ecosystem as "bakers", who distribute the token inflation and fee rewards to the delegators on a pro-rata basis.The Tezos blockchain is secured using a Delegated Proof of Stake consensus process. In the Tezos documentation, this consensus process is referred to as Liquid Proof of Stake. However, it is important to understand that the definition of Liquid Proof of Stake has evolved over the last decade and now refers to the creation of artificial liquidity through the minting of synthetic assets tied to one's stake.

The Tezos network does not produce "wrapped assets" or synthetic assets. Nevertheless, XTZ token holders can delegate their funds to other validators, known in the ecosystem as "bakers", who distribute the token inflation and fee rewards to the delegators on a pro-rata basis.

The Tezos ecosystem has introduced an on-chain process to propose, select, test and implement protocol improvements. Each update is voted on and approved by the community, significantly reducing the likelihood of hard forks as these updates are only approved if the community is in favour of them.

Bakers, the validators of the Tezos network, are also the voters in the formal upgrade process, with their votes proportional to the size of their stake. Anyone who has 6000 XTZ tokens available to stake on the network can become a Baker. Others who do not have these funds can delegate their tokens to Bakers, who can then vote on their behalf.

The process for submitting improvement proposals for Tezos comprises five phases, each lasting five baking cycles or approximately two months and ten days. The phases are as follows:

1. Proposal Period
   the proposal phase, bakers can submit their proposals for the rest of the community to consider. Up to 20 proposals can be submitted in each phase, which are then voted on by the other bakers. At least 5% of the voting members must vote in favour of the proposal for it to progress to the next phase.

2. Exploration Period
   In this second phase, the bakers vote on whether the proposal with the highest score from the previous phase should be included in the test phase. This vote is the first of two absolute majority votes required for a change to be accepted. If a proposal receives an absolute majority of 80%, it will proceed. This stage serves as a preliminary filter to ensure that only proposals with clear support are carried forward. Any proposal that does not receive an absolute majority is moved back to the first phase to restart the proposal process.

3. Cooldown and Test Period
   The cooldown phase is for developers and delegates to review the proposal and discuss the details off-chain or perform additional testing to ensure everything is working as planned. During this time, a branch of Tezos is activated to run in parallel with the main network to test the proposed upgrade. The branch works like a test network environment, allowing bakers and developers to evaluate the changes in a live environment without affecting the main network.

4. Promotion period
   After the test phase, the bakers vote in a second vote, the so-called "promotion vote", on whether the proposal should be implemented in the main network. A further 80 per cent majority is required for the proposal to be accepted. This vote is the final approval step before an upgrade is implemented and ensures that only thoroughly tested and widely supported changes are implemented.

5. Implementation
   If the endorsement vote is successful, the proposal enters the acceptance period, during which the protocol upgrade is prepared for activation. During this period, bakers, end users and developers can upgrade their software and prepare for the transition. At the end of this period, the new protocol is automatically activated on the main network, completing the upgrade process.

Each of these phases is designed to ensure that changes to the Tezos protocol are made democratically and thoughtfully, and reflect the collective decision-making of the community.

The Tezos network has been further developed over the years with the following important suggestions for improvement:

• Athens (May 2019) - Increase in the gas limit per block.

• Babylon (October 2019) - Introduction of a refined version of the consensus algorithm called Emmy+, simplifying the development of smart contracts and improving the delegation process.

• Carthage (March 2020) - Increase in gas limit per block; improved calculation of back rewards.

• Delphi (September 2020) - Drastic reduction in storage costs.

• Edo (February 2021) - Addition of privacy-friendly smart contracts

• Florence (May 2021) - Doubles the permitted size of smart contracts, introduces gas optimisations and several other infrastructural improvements

• Granada (August 2021) - Introduction of liquidity cheeks.

• Hangzhou (December 2021) - Several improvements to smart contracts and measures against MEV-related practices.

• Ithaca (April 2022) - Introducing Tenderbake, an improved Tezos consensus algorithm with fast finality and improved scalability. Improved back experience and more.

• Jakarta (June 2022) - Introduction of Transaction Optimistic Rollups.

• Kathmandu (September 2022) - Activates optimistic rollups for smart contracts in test networks.

• Lima (December 2022) - Pipeline improvements that separate validation from the application of operations to enable higher throughput.

• Mumbai (March 2023) - Block times halved to 15 seconds. Smart roll-ups fully activated in the main network.

• Nairobi (June 2023) - Increased network throughput, refined smart contract calls and smart rollup maintenance operations with an improved gas model for cryptographic signatures.

Tezos (XTZ) is the native cryptocurrency of the Tezos blockchain. XTZ tokenomics are designed to support and promote the operation and security of the Tezos network. Here are some important aspects of Tezos tokenomics:

• Staking (Baking): Tezos uses a Liquid Proof-of-Stake (LPoS) consensus mechanism. Token holders can "stake" their XTZ by participating in the network as bakers. Bakers are responsible for creating new blocks and securing the network. In return for their services, they receive staking rewards in the form of newly minted XTZ.

• Delegation: XTZ owners who do not wish to bake can delegate their tokens to a baker to participate in the staking process and earn a portion of the baking rewards without having to run a node themselves.

• Inflation funding: The network mints new XTZ as a reward for bakers, resulting in inflation. However, since all stakeholders can participate in staking, inflation is effectively distributed to those who secure the network, aligning the incentives for token holders and network validators.

• On-chain governance: XTZ is used in the governance process of the Tezos network. XTZ holders can vote on proposed protocol upgrades, with the weight of their vote proportional to the amount of XTZ they hold (or bake/delegate).

• Transaction fees: While the primary incentive for bakers comes from block rewards, they also receive transaction fees. However, fees are generally lower on Tezos compared to networks such as Ethereum, partly due to the more efficient consensus mechanism.

• No upper limit: Unlike Bitcoin, Tezos has no upper limit for the total amount of XTZ. The amount will continue to grow as new blocks are baked and rewards are distributed.

• Smart contract platform: XTZ is used to interact with smart contracts on the Tezos blockchain. This includes the execution of contract functions and the payment of transaction fees associated with the execution of smart contracts.

• Utilisation and participation: In addition to staking and governance, XTZ can be used in the Tezos ecosystem for various purposes, such as participation in DeFi applications, NFT marketplaces and other services based on the Tezos blockchain.

Tezos' tokenomics are designed to encourage active participation in the security and governance of the network while supporting a growing ecosystem of decentralised applications. The inflation model through staking rewards is designed to ensure that the network remains secure and validators are compensated for their efforts without incurring high transaction fees.Tezos (XTZ) is the native cryptocurrency of the Tezos blockchain. XTZ tokenomics are designed to support and promote the operation and security of the Tezos network. Here are some important aspects of Tezos tokenomics:

• Staking (Baking): Tezos uses a Liquid Proof-of-Stake (LPoS) consensus mechanism. Token holders can "stake" their XTZ by participating in the network as bakers. Bakers are responsible for creating new blocks and securing the network. In return for their services, they receive staking rewards in the form of newly minted XTZ.

• Delegation: XTZ owners who do not wish to bake can delegate their tokens to a baker to participate in the staking process and earn a portion of the baking rewards without having to run a node themselves.

• Inflation funding: The network mints new XTZ as a reward for bakers, resulting in inflation. However, since all stakeholders can participate in staking, inflation is effectively distributed to those who secure the network, aligning the incentives for token holders and network validators.

• On-chain governance: XTZ is used in the governance process of the Tezos network. XTZ holders can vote on proposed protocol upgrades, with the weight of their vote proportional to the amount of XTZ they hold (or bake/delegate).

• Transaction fees: While the primary incentive for bakers comes from block rewards, they also receive transaction fees. However, fees are generally lower on Tezos compared to networks such as Ethereum, partly due to the more efficient consensus mechanism.

• No upper limit: Unlike Bitcoin, Tezos has no upper limit for the total amount of XTZ. The amount will continue to grow as new blocks are baked and rewards are distributed.

• Smart contract platform: XTZ is used to interact with smart contracts on the Tezos blockchain. This includes the execution of contract functions and the payment of transaction fees associated with the execution of smart contracts.

• Utilisation and participation: In addition to staking and governance, XTZ can be used in the Tezos ecosystem for various purposes, such as participation in DeFi applications, NFT marketplaces and other services based on the Tezos blockchain.

Tezos' tokenomics are designed to encourage active participation in the security and governance of the network while supporting a growing ecosystem of decentralised applications. The inflation model through staking rewards is designed to ensure that the network remains secure and validators are compensated for their efforts without incurring high transaction fees.

Tezos is a versatile blockchain platform that supports various applications and products. Here are some notable examples:

• Dexter: Dexter is a decentralised exchange (DEX) based on Tezos that allows users to trade tokens directly from their wallets.

• Kolibri: Kolibri is a platform on Tezos that allows users to create kUSD, a cryptocurrency pegged to the US dollar. Users can lock XTZ as collateral for minting kUSD.

• QuipuSwap: QuipuSwap is a protocol for decentralised exchanges on Tezos. It provides an interface for the exchange of Tezos-based tokens and the opportunity to earn rewards as a liquidity provider.

• tzBTC: tzBTC is a tokenised version of Bitcoin on the Tezos blockchain. It brings the liquidity and value of Bitcoin to the Tezos ecosystem and enables new use cases such as lending and staking.

• Homebase: Homebase is a project that enables the creation and management of DAOs (decentralised autonomous organisations) on Tezos. Anyone can create a DAO, propose decisions and vote on them.

• OneOf: OneOf is an environmentally friendly NFT (Non-Fungible Token) platform based on Tezos and developed for the music industry. It is backed by music producer Quincy Jones and offers a variety of NFTs related to music.

• Tezsure: Tezsure is a decentralised insurance platform based on Tezos. It enables users to create and manage insurance policies using smart contracts.

• Tezos Domains: Tezos Domains is a distributed, open and extensible naming system that utilises the Tezos blockchain. It simplifies the user experience by providing human-readable names instead of complex alphanumeric addresses.

These applications and products demonstrate the versatility of the Tezos blockchain and its ability to support a variety of decentralised applications and services.

Tezos is a cryptocurrency with which you can create and use smart contracts. In addition, XTZ tokens can also be used to carry out transactions, invest or "beacon". Owning XTZ allows you to vote on changes to the blockchain. However, there is a disadvantage: those who own more Tezos also have more voting rights. Companies use Tezos to build their platform. They use smart contracts, for example, and everything is stored securely on the blockchain. Tezos can also be used to buy NFTs (non-fungible tokens). As the name suggests, these are items/tokens that are non-fungible and only belong to one person. Forms of NFTs include digital images, videos and tickets, but they can also be used to play games. The smart contracts from Tezos enable NFTs to be traded.

If you want to take part in the governance process, just buy Tezos token and allocate them in the platforms DAO, decisions which are available on their respective website!

Tezos was conceived and founded in 2014 by a married couple named Arthur and Kathleen Breitman. Five years after the launch of Bitcoin, Arthur and Kathleen released their first version of Tezos in 2014. In those five years, cryptocurrencies were already showing their potential, but the couple still saw room for improvement. Therefore, the goal of Tezos is to eliminate exactly the disadvantages of other cryptocurrencies. Tezos raised 232 million dollars in its Initial Coin Offering (ICO) in 2017, the largest ICO proceeds at the time. Arthur and Kathleen Breitman did not agree with the Tezos Foundation, which was founded in 2017. Due to the differences of opinion, it took a long time before Tezos could actually launch. Arthur Breitman is currently a member of the Tezos Foundation Board.

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