Tezos is a Layer 1 blockchain renowned for its self-amending capabilities. It was the first major network to implement on-chain governance, allowing it to rapidly iterate technology without contentious hard forks. The network runs on Liquid Proof-of-Stake (LPoS), a consensus mechanism that allows token holders to participate in validation (baking) while retaining full liquidity of their assets. Tezos smart contracts are often written in Michelson or high-level languages like SmartPy, with a strong focus on formal verification for high-value assets.

The ecosystem has shifted significantly toward a modular architecture under the "Tezos X" vision:

Etherlink Mainnet (EVM L2): By late 2025, Etherlink established itself as the primary execution layer for the ecosystem. As an EVM-compatible Smart Rollup, it allows developers to deploy Solidity contracts that settle on Tezos with sub-second latency and negligible fees. Activity on Etherlink surpassed Layer 1 transaction volume in Q2 2025.

Seoul Upgrade (Sept 2025): The network successfully activated the Seoul protocol upgrade. This update introduced native multisig functionality directly at the protocol level (removing reliance on smart contracts for shared wallets) and optimized validation efficiency, reducing the hardware resources required for bakers by roughly 60%.

Rio Upgrade (May 2025): Earlier in the year, the Rio upgrade shortened baking cycles from 3 days to 1 day. This change allows for faster staking activation and more responsive rewards distribution for delegators.

The XTZ token is the governance and economic unit of the self-amending ledger:

Baking & Delegation: Users delegate XTZ to bakers to secure the network. Unlike other chains, delegated XTZ is not locked; users can move or spend their tokens at any time (though doing so stops reward accrual).

Governance: XTZ is used to vote on protocol amendments. This includes approving technical upgrades (like the Seoul and Rio updates) and adjusting inflation parameters.

Rollup Security: XTZ serves as the bond asset for Smart Rollups (like Etherlink), ensuring honest execution of Layer 2 transactions.

Consensus: Liquid Proof-of-Stake (LPoS)

Governance: On-Chain Self-Amendment

Block Time: ~8 Seconds (Post-Quebec Upgrade)

Smart Contract Language: Michelson / SmartPy / Solidity (via Etherlink)

Total Supply: Dynamic (Inflationary to fund security)

Learn More: Tezos Activates Its 16th Upgrade for Better Performance