Tezos is a blockchain network that’s based on smart contracts using proof-of-stake technology. This open-source platform bills itself as “secure, upgradable, and built to last” — and says its smart contract language provides the accuracy that is required for high-value use cases. According to Tezos, its approach means that it is futureproofed and will “remain state-of-the-art long into the future,” meaning it can embrace developments in blockchain technology.

People who hold XTZ can vote on proposals for protocol upgrades that have been put forward by Tezos developers.

Although staking is common across blockchains, Tezos has a unique twist on this process. Participants can get involved with the network’s governance through “baking,” where they effectively stake 8,000 XTZ. This creates a financial incentive to act honestly.

Bakers are then tasked with voting on proposed changes to the blockchain’s code in a four-step procedure that takes approximately 23 days. Proposals that receive support from most participants are put through their paces on a test net for 48 hours and are fully implemented if they are backed by a super-majority.