The Ultimate Tezos XTZ Frequently Asked Questions List for 2020

  1. What is Tezos? What does 'Tezos' mean?
  2. How does Tezos work?
  3. Who invented Tezos? How was Tezos created? Who is behind Tezos?
  4. What is Tezos used for?
  5. Why does Tezos have value?
  6. How many Tezos coins are there? What is the Tezos maximum supply?
  7. What is a Tezos transaction? How do Tezos transactions work? Is Tezos a blockchain?
  8. Are Tezos transactions anonymous? Can Tezos be traced?
  9. How is Tezos created? Can Tezos be mined? How does Tezos mining work?
  10. Can Tezos be taxed? Are Tezos gains taxable? Are Tezos transactions taxable?
  11. How does a Tezos ATM work? Are Tezos ATMs safe? Are Tezos ATMs anonymous?
  12. Can Tezos scale?
  13. Can Tezos be stolen?
  14. Can Tezos be hacked?
  15. Where is Tezos stored? Where to store Tezos?
  16. What is a Tezos wallet? How do Tezos wallets work?
  17. Who uses Tezos? Where is Tezos used?
  18. Who accepts Tezos? Where is Tezos accepted?
  19. Why is Tezos the future?
  20. Can Tezos crash? Will Tezos crash?
  21. Is Tezos a good investment?
  22. Where to buy Tezos? How to get Tezos?
  23. Can I buy Tezos without ID? Is there a way to get Tezos without SSN?
  24. Can I get Tezos without KYC? Is it possible to buy Tezos without verification?
  25. Which cryptocurrency to buy? Should I buy Bitcoin or Tezos? Tezos vs Bitcoin?
  26. Is Tezos publicly traded?
  27. Can Tezos reach 10? Can Tezos reach 100? Can Tezos reach 1000?
  28. How long is a Tezos transaction time?
  29. How many confirmations for a Tezos transaction?
  30. How much is a Tezos transaction fee? How much does a Tezos transaction cost?
  31. What is the Tezos blockchain? How does the Tezos blockchain work?
  1. What is Tezos? What does 'Tezos' mean?

  2. Tezos is inspired by some of the design concepts of Bitcoin, the world's first peer-to-peer cryptocurrency, but with several attempts to make it better. A decentralized cryptocurrency keeps track of all transactions by all addresses on a peer-to-peer shared record, called a Blockchain. One of Tezos's innovations is a self-amending cryptographic ledger, which allows the protocol to be changed seamlessly. Tezos is traded on bitni.com.

  3. How does Tezos work?

  4. Blockchain based cryptocurrencies like Tezos work by grouping transactions together in data blocks, then linking the blocks cryptographically. The chain of blocks is stored across a decentralized network of nodes run by stakeholders, and distributed as peer-to-peer shared files. Quantities of Tezos are stored at addresses, cryptographic sequences paired with a private key used to spend the amount at the address. The user's wallet keeps track of all their Tezos addresses and adds up the balance.

  5. Who invented Tezos? How was Tezos created? Who is behind Tezos?

  6. Tezos was designed by Arthur and Kathleen Breitman, with continued development by the Tezos Foundation, and the software is open source, so anyone can modify and build on it. Tezos tries to improve Bitcoin, lowering transaction times from 10 minutes to just a few seconds, by replacing computationally expensive proof-of-work with a proof-of-stake, and designing a protocol that can be changed without breaking backwards compatibility.

  7. What is Tezos used for?

  8. Tezos is used for anything money is used for - buying, selling, donations. But Tezos can also be used for even more things than fiat currency: A means of accepting donations or facilitating commerce that cannot be shut down by governments or the banking system. Also storing up wealth that cannot be confiscated.

  9. Why does Tezos have value?

  10. Tezos has more value than Fiat Currency because it's more useful: It's anonymous, decentralized, irreversible, cannot be devalued, cannot be confiscated, can be sent over the internet to anywhere in the world in minutes. Things that are very useful and scarce tend to be valuable. One reason Tezos has value because it fulfills all of the requirements of money: Store of Value, Medium of Exchange, Unit of Account.

  11. How many Tezos coins are there? What is the Tezos maximum supply?

  12. Tezos has no maximum supply limit, although it's possible the stakeholders may vote on one someday. The inflation rate of new coins is about 5.51%. The slight yearly increase of new coins helps replace lost ones and pay for the cost of transactions, which are quite low compared to other cryptocurrencies.

  13. What is a Tezos transaction? How do Tezos transactions work? Is Tezos a blockchain?

  14. An Tezos transaction is a transfer of value from one address to another. Unlike Bitcoin, which verifies transactions with a cryptographic proof-of-work, Tezos uses a proof-of-stake, where the blockchain is determined by a consensus of coin holders. A transaction is created by a user on their Tezos client software, then broadcast out to all the other nodes and becomes part of the Tezos Blockchain.

  15. Are Tezos transactions anonymous? Can Tezos be traced?

  16. The Tezos Blockchain is a public record of all transactions by all addresses. However, an address is just a number - it doesn't reveal anything about the identity of the one using it, like a street address can. As long as this number is never linked to an identity, the Tezos user is safe. There is no way to "trace" a Tezos address to the person using it - unless they leave clues connecting their Tezos address to their physical identity. bitni.com has maximum anonymity - we don't ask for personal details.

  17. How is Tezos created? Can Tezos be mined? How does Tezos mining work?

  18. Traditional cryptocurrency mining is the computational process of adding new blocks to the blockchain. New transactions are grouped together in a block. New blocks must cryptographically connect to previous blocks with a proof-of-work hash function. Tezos also has a blockchain, but with a critical difference - it is proof-of-stake rather than proof-of-work. The owners of the coins are the stakeholders. New Tezos are randomly awarded to stakeholders in a process called "baking".

  19. Can Tezos be taxed? Are Tezos gains taxable? Are Tezos transactions taxable?

  20. Tezos was not designed to be taxed. If no one reports their Tezos gains, there is no way an authoritarian regime can know who gained what. However, centralized exchanges with accounts and IDs do report their user's Tezos balance to tax authorities. If you want privacy from authoritarian regimes, you need an accountless exchange that doesn't ask for your ID - bitni.com is the best exchange in this regard.

  21. How does a Tezos ATM work? Are Tezos ATMs safe? Are Tezos ATMs anonymous?

  22. Tezos ATMs allow a customer to buy Tezos by inserting physical cash, like a vending machine, or send Tezos to receive physical cash. (The former are called "1 way" ATMs and the latter are called "2 way".) If the Tezos ATM is from a trusted manufacturer and operator, it should be safe to use. Different Tezos ATMs have differing AML/KYC requirements.

  23. Can Tezos scale?

  24. Tezos has scaled to handle millions of transactions per month. Tezos is software, and it can evolve to scale - the code can be modified with better algorithms and the network then upgrades to the more advanced version. Tezos attempts to improve on Bitcoin to solve scaling issues, by processing transactions every minute instead of 10 minutes, and using proof-of-stake instead of computationally expensive proof-of-work.

  25. Can Tezos be stolen?

  26. Anyone who knows the private key can move the coins from an address. If the private key is not known, it's not possible to spend the coins at an address. Tezos stored in the wallets of a centralized exchange can be stolen - it happens all the time. At a Non-custodial exchange like bitni.com, you are in charge of your wallet at all times.

  27. Can Tezos be hacked?

  28. If Tezos network could be hacked, it would have probably already happened. The blockchain is decentralized across many independent nodes - the more nodes on the network, the higher the security. If any one node is compromised, it will not compromise the others. However, centralized Tezos exchanges are hacked all the time! That's why you need a non-custodial exchange like bitni.com.

  29. Where is Tezos stored? Where to store Tezos?

  30. The data of all Tezos transactions is stored in a public Tezos Blockchain distributed as peer-to-peer shared files. Each node has a complete copy of all transactions ever made - the Tezos Blockchain. So the transactions are stored in the cloud - not on a centralized server, but on many independent nodes. Each user's Tezos balance is also kept track of in their wallet.

  31. What is a Tezos wallet? How do Tezos wallets work?

  32. A Tezos wallet stores all of the user's Tezos addresses. The sum value of all of the addresses in a wallet is automatically added up - this is the total balance of a wallet. Centralized exchanges store the user's wallet, which is risky. Non-custodial exchanges like bitni.com do NOT store user's wallets, which is much safer.

  33. Who uses Tezos? Where is Tezos used?

  34. Millions of people everywhere in the world use Tezos for all the same things as any other money is used for - buying, selling, and donations - and the number of users is growing rapidly. Anyone needing to transfer wealth internationally, especially outside the grasp of authoritarian regimes, for ridiculously low cost, will find Tezos useful if they are not already using it. Tezos is also used as an investment and a hedge against fiat currency inflation.

  35. Who accepts Tezos? Where is Tezos accepted?

  36. Many merchants, especially online, accept cryptocurrencies as payment. Charities like Wikipedia accept donations in crypto. Web Hosts and Domain registrars often accept crypto. Large brick and mortar stores are starting to accept crypto payment. Some local restaurants are also coming on board. bitni.com accepts Tezos to convert to other currencies, of course.

  37. Why is Tezos the future?

  38. The reason why a cryptocurrency is the future can be summed up in 3 words: Because it's better. Tezos is a huge improvement over fiat currency. It is also an improvement over precious metals - they can't be wired over the internet. If central banks continue destroying the value of fiat currencies, cryptocurrencies will become even more important to the future of money.

  39. Can Tezos crash? Will Tezos crash?

  40. If Tezos were going to crash to zero, it would have probably done it already. There have been wild price swings - because it's new and there's a lot of speculation, like the internet when it first came out. But there are wild price swings with other commodities like oil. Tezos's low after it's all-time high of several dollars is still a few dollars. For Tezos to crash to $0, demand would need to be zero or supply would need to be infinite - a highly unlikely scenerio.

  41. Is Tezos a good investment?

  42. The Original Bitcoin has gone from pennies to thousands and thousands of dollars in less than a decade, utterly blown away the stock market, even gold and other precious metals, and far outperformed pretty much any other investment. While Tezos has not reached Bitcoin's high, it has performed relatively well, going from a fraction of a penny to several dollars at it's high - a pretty good investment.

  43. Where to buy Tezos? How to get Tezos?

  44. Exchanges are where Tezos is bought and sold, however there are several types: Centralized Exchanges store the user's coins like a bank and require ID. Decentralized Exchanges (DEX) facilitate peer-to-peer buying and selling between users - and these can be done locally in-person or online. Non-Custodial exchanges like bitni.com are a quick and easy way of swapping cryptocurrencies without signing up.

  45. Can I buy Tezos without ID? Is there a way to get Tezos without SSN?

  46. Many Centralized exchanges have rigorous requirements for identification, such as uploading a scan of passport or other government documents. Decentralized exchanges usually have less stringent requirements for identification, especially if the transaction is in-person. Non-custodial exchange bitni.com does not require identification for crypto-to-crypto swaps. If you want Tezos without SSN, you've come to the right place.

  47. Can I get Tezos without KYC? Is it possible to buy Tezos without verification?

  48. KYC stands for Know Your Customer. Many regimes have become increasingly authoritarian towards cryptocurrency and seek to crack down on anonymous trading, by requiring the customer to upload documents proving their identity. Many exchanges have caved in to the pressure and now have KYC policies. Centralized exchanges almost always have KYC, some Decentralized exchanges do as well. bitni.com does not require KYC for crypto-to-crypto swaps.

  49. Which cryptocurrency to buy? Should I buy Bitcoin or Tezos? Tezos vs Bitcoin?

  50. In many ways, Tezos is technically superior to Bitcoin. It has much faster transaction times. It has rediculously low transaction fees. However, Tezos doesn't have the massive publicity that Bitcoin has (not all of Bitcoin's publicity is good, but apparently there's no such thing as bad publicity). And that's why Bitcoin is priced much higher. Many more people know about Bitcoin than Tezos. However, that can change, as Tezos could become more widely known in the future. Bitcoin is also fully decentralized, whereas Tezos is maintained by the Tezos Foundation.

  51. Is Tezos publicly traded?

  52. Most Tezos trading is done by buying and selling coins directly by individual investors. However, there are cryptocurrency funds listed on stock markets. A Cryptocurrency Exchange Traded Fund (ETF) holds assets in single cryptocurrencies or a basket of them. It may be more convenient to buy into one basket fund instead of manually managing dozens of different cryptos and their respective wallets. In the case of Tezos, it is probable some Cryptocurrency ETFs are holding it.

  53. Can Tezos reach 10? Can Tezos reach 100? Can Tezos reach 1000?

  54. Tens, hundreds, or even thousands for a Tezos coin may seem speculative, but Tezos's high is already several dollars. Tezos pays an impressive dividend when it is put to use in staking, making it highly lucrative to investors. 10 is only a few times higher than the all time high. If the long term trend continues, Tezos could reach new highs orders of magnitude greater.

  55. How long is a Tezos transaction time?

  56. A new block on the Tezos blockchain is added every minute. The number of transactions in each block is limited to several thousand. Transactions paying higher fees are given priority over those paying lower fees, which must sometimes wait to be included in future blocks instead of the current one. A Tezos transaction time can be as short as the generation of one block in 1 minute. However, 30 levels of blocks is needed for irreversibility, thus the safe transaction time is 30 minutes.

  57. How many confirmations for a Tezos transaction?

  58. A Tezos transaction can be tentatively completed in as little as 1 confirmation in 1 minute. However, the latest blocks in the blockchain are changeable until more blocks are added after them. For irreversibility, 30 levels of blocks and thus 30 confirmations are needed. The latest block in the process of being added to the blockchain is changeable. Not till several more blocks have been added after it is that part of the blockchain considered immutable.

  59. How much is an Tezos transaction fee? How much does a Tezos transaction cost?

  60. A Tezos transaction fee is the cost of having transaction data included in blocks added to the blockchain permanent record, which fluctuates under market supply and demand. The average transaction fees are a fraction of a penny. Lots of factors affect transaction fees, such as the cost of electricity, the hardware capacity and competition between miners, the number of simultaneous transactions competing to be included in a block.

  61. What is the Tezos blockchain? How does the Tezos blockchain work?

  62. Tezos transactions are records of balances moved amongst addresses. Blocks are lists grouping Tezos transactions for the purpose of easier verification and sharing accross the network. New blocks are generated at a fixed time interval of 1 minute. Each block is connected to the one chronologically preceeding it by a cryptographic hash. Once a block has been verified, it is distibuted to the other nodes as a peer-to-peer shared file.

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