Tezos is an open-source application that helps decentralized apps. It can update by itself by not dividing the community. It follows the rule of the self-amendment, where it can upgrade on its own and still not disturbing the network into non-identical blockchains. Not only this, it can lead to lower stakeholder incentives, derange the network effects that have been formed for a long time. It’s the self-amendment because of which the cost of coordination and execution is lessened and therefore increased the innovation growth of the future.
It is up to the stakeholder to accept the proposed implementation for giving the payments to the individuals or groups to improve the contract. This system of funding cheer very strong participation along with decentralizing the prolongation of the network. Thi type of environment and culture will appreciate the diverse developer ecosystem which is active and open. It will also give to the pact that will help the adoption of tezos development.
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What’s PoS?
Tezos is run by a PoS(proof of stake) where you don’t mine as you do in bitcoin. Here you have to bake for which you should e having 8000 XTC and if you have not, you can give your coins to bakers and be a delegate. By being a delegate you can also earn a passive income. If you give your coins to the baker in return they give you tokens as an interest. In this way, you are earning as well as reaching closer to be a baker. In the tezos Fundraiser, there’s a rule that follows the protocols which are, no baker can propose any plans without the acceptance of their delegate and if they are, they will be punished by reducing some coins of them. Whereas a delegate cannot present any plans, it has to be the baker who can propose.
The process where participants reach the agreement is known as proof of state or PoS. in this pos system, stakeholders can contribute to the security and stability of the network in tezos to get rewarded by the pact. In comparison to other systems, pos is a cheaper agreement process and lessens the barrier of entry to involve in the system. But to participate in the agreement, one has to submit a deposit amount to avoid dilution of the amount due to inflation. In tezos, the security of work is defined by the trustable majority of people who shape the agreements to fit in the protocol. Tezos reward the honest person and punish the person with untrustable authority. As a result, if a person would not be honest, they will lose their security deposit. In case when a person does not want to participate directly then they may become a delegate and make someone a participant on their behalf.
One should always take care of their private key while entering it anywhere. As hackers are waiting to hack your private key and steal all your crypto assets. You have to take care of your tezos Fundraiser key.
