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Definition: Tezos

A smart contract blockchain that uses a proof-of-stake (PoS) model to execute transactions. Launched in 2018, the Tezos native crypto is the tez (XTZ), and Tezos contracts are written in Michelson. Mining nodes are called "bakers," and any entity can become a baker with a stake of at least 8,000 XTZ. Staking XTZ tokens is known as "baking."

The Tezos "liquid" proof-of-stake mechanism chooses a baker to create the transaction block. The block is then sent to 32 other baker nodes in the pool, and if the majority attest to the block's validity, it is added to the Tezos chain. Both miners and validators receive rewards, but if the block is considered invalid, the miner is penalized by forfeiting a small amount of its initial stake. Tezos is also popular for handling non-fungible tokens. See crypto glossary, smart contract and non-fungible token.