Why Tezos can soon have an impact on Ethereum
- The halving followed after the all-time high
- Tezos can develop into an Ethereum competitor
Tezos is a relatively young cryptocurrency - it was only founded in 2018. The company behind it is based in Zug, the Swiss crypto valley. Ethereum is also based here. The Tezos crypto currency was developed by Kathleen and Arthur Breitman. In the beginning, the focus was on the internal power struggles that were fought between the Tezos Foundation and the Breitmans, but the situation relaxed over time.
Why you should keep an eye on Tezos
The proof of stake consensus mechanism is used. Tezos calls the mechanism "Liquid Proof of Stakes". However, some researchers have concluded that Tezos, while not having the same degree of decentralization as Ethereum, is “more decentralized than other DPoS blockchains”. Because Tezos has no upper limit for the number of nodes; Tezos can therefore become more and more decentralized as it grows. In the future, it is also possible that Ethereum 2.0 and Tezos will compete with each other in terms of decentralization and security.
Anyone who has already invested in Tezos via eToro should therefore definitely follow the developments in the background and always keep an eye on Ethereum.
The Tezos price rose from over 1 US dollar (January 2020) to 4,44 US dollars (August 13, 2020 - also a new all-time high). By the turn of the year, however, the Tezos price lost ground - the Tezos price was halved towards US $ 2,02.