Tezos — Next Gen STO Blockchain?
According to a recent Bloomberg article Banco BTG Pactual & Dalma Capital plan to issue security token worth over 1 billion via the Tezos (XTZ) blockchain.
What are security token?
The word “security” is a kind of generic term for financial instruments. A security is an investment instrument that certifies certain rights on any kind of asset. These instruments can be stored in any way, also on a blockchain. They guarantee you to the right of ownership to an asset and the issuing company must be licensed.
Security token are in general asset-backed token stored on a blockchain issued by licensed companies.
Why Tezos?
Tezos supports the creation of smart-contracts. These smart contracts can be used to issue security token and to prove the ownership of an asset.
As the Tezos blockchain has a built-in consensus mechanism the protocol can upgrade/ammend according to the needs of an next-generation blockchain. The ammendment will be done after voting on the “new design” of the blockchain.
Where can I get Tezos?
Tezos can be traded on cryptocurrency exchanges. A first guide on buying XTZ you can find here:
What can I do with my brand new Tezos — Tez?
Tez is the measuring unit (or simply the coin) recorded on the Tezos blockchain.
Comparison to Bitcoin:
Like on the Bitcoin blockchain the normal measurement is one Bitcoin (1 BTC). The smallest unit of Bitcoin is called satoshi (one hundred millionth of one Bitcoin; 0.00000001 BTC).
On the Tezos Blockchain one unit is called a Tez. The smallest unit is one cent. One hundredth of one Tez (0.01 Tez).
Tez are used to transfer value on the blockchain or to interact with smart contracts.
Secondly you can participate in staking algorithm, called the baking. By doing so you validate or give someone else the right to validate the network activity.
You will get rewards in Tez for your staking activity. It can be seen as passive income.
On Tezos you can securely participate by delegating your baking rights to someone else
More info:
How can I store Tezos & bake?
Find a beginner tutorial here:
Kind regards
Tezard
— You shall not parse! —
Disclaimer: This is not an investment advice. Buying cryptocurrency is risky. Please do your own research.