Tezos Shared Node

The network of the Tezos cryptocurrency started its work in 2018. It is designed to run decentralized applications and execute smart contracts. The programming language Ocaml is used to write Tezos code. The coin on the Tezos network has the designation XTZ. In total, 763 306 929,68 XTZ coins were initially created. This is an inflationary coin, the amount of which increases by about 5.5% per year. The LPoS (Liquid Proof of Stake) algorithm is used to confirm transactions between free nodes. The more coins the Tezos node has, the greater its chance to get a reward for checking the next block.

Blockchain nodes providers that have the permission to validate Tezos transactions are called bakers. To become one of these trusted free nodes, you must have at least 8000 XTZ coins on your balance. A minimum of 8 gigabytes of RAM, a modern processor, stable uptime, and a high bandwidth level are also required. Trusted crypto nodes can put forward their suggestions for improving the Tezos network. If this proposal is accepted, the initiative Tezos node will be rewarded. Public crypto nodes with insufficient balance can rent their XTZ coins and get a reward of about 6% per annum. If the XTZ node does not behave honestly, it may lose the deposit amount. Tezos algorithm prohibits public nodes from spending XTZ coins that have been leased by other participants. The need to have XTZ coins on the balance of XTZ nodes reduces the market supply of coins, contributing to the growth of the rate.

Tezos has three levels: the consensus level, the network level, and the transaction level. Each level can be upgraded separately without a mechanism like hard fork implementation. At the consensus level, XTZ nodes are voted on and new transactions are recorded in the block. At the network level, smart contracts and decentralized applications are executed. At the transaction level, XTZ coins are transferred between public crypto nodes. A fee for a transaction is not required and it is possible to send transactions with zero fees. It will be processed with a lower priority in the queue.

Tezos supports the creation of decentralized applications and smart contracts. The Michelson programming language is used to write smart contracts in the Tezos network. Libraries for Pascal, Ocaml, ReasonML, Python, and other higher-level programming languages are also supported. Michelson language is made as simple as possible for reading and writing programs, which allows you to easily check what makes a smart contract. A mechanism has been implemented to ensure that the code is executed correctly and does not cause a system failure. As with Ethereum, the gas parameter is used to determine the complexity of executing a smart contract. The cost of the required amount of gas is known before the contract is executed and is not high. Although it is possible to create custom tokens, the developers do not focus on this Tezos function.

The Tezos rate was positively influenced by the choice of its blockchain as the basis for the future digital currency of the European Union. Due to its modular structure, it is easy to add updates to the Tezos code. Software updates for XTZ nodes and Tezos wallets are released regularly. It is planned that future transactions between Tezos nodes will be private thanks to the use of interactive zero-knowledge proofs of knowledge (NIZKPK) and Ring Signatures technologies.