Crypto Academy Week 9, Season 2 - Homework Post for [@alphafx]

Hello everyone and special greetings from Cameroon to our able professor @alphafx. Its been a pleasure taking part in your homework task after reading and gaining more knowledge from your lecture. It is often said that knowledge is power. This week homework task, i will be looking at an appraisal of Tezos(XTZ), and Etheruem(ETH) that exist amongst many blockchain networks. Below is the rundown of how my work will be presented.

TABLE OF CONTENT
A)Understanding Ethereum (ETH).
B)Understanding Tezos (XTZ).
C)An Appraisal of Ethereum and Tezos.
i) Decentralization
ii) Security
iii) Transaction Speed
iv) Market Value
v) Trust
D)Importance of Ethereum over Tezos.
E)Importance of Tezos over Ethereum.
Conclusion.

---

A) Understanding ETH
Ethereum happened to be one of the big guns on the crypto world. It was developed by Vitalik Buterin, and launched in 2015. It is a decentralised network where everyone is involved in decision making without interference of any central authority.
In terms of usage, the ETH platform is used for digital currency exchange such as MakerDao, and not limited to Uniswap. It is equally used to host different applications such as payment methods, voting systems etc.
Notwithstanding, ETH blockchain is not a digital currency, but has a token known as Ether used to reward on the network.

---

B) Understanding Tezos (XTZ)
This is amongst the growing number of blockchain platforms, which is mearnt to run smart contracts.
It was created by Arthur Breitman in 2014, but it went fully operational in 2018. He was a former employee of Google X and Waymo where he worked as a research engineer.

As all research requires time before concrete conclusions are drawn, this was exactly what Breitman faced, recording many mistakes, restructuring before attending perfection with the Tezos blockchain. This justify the reason it was developed in 2014 but officially operating in 2018. Later, it became one of the competitor to the ETH blockchain. This is why in 2017, Tezos become one of the largest Initial Coin Offering (ICOs). It is equally a decentralized system where nodes or participants are involved in decision making.

---

An Appraisal of Tezos and Ethereum
Though both are blockchain platforms mearnt to run smart contracts, both have some differences. I will be looking at an appraisal of both platforms based on; decentralization, transaction speed, security, value within the market, and level of trust.
i) Decentralization: Both platforms are decentralized structures. Meaning that participants on the network are free to take decisions without interference from a central authority when it comes to transactions on the network. However, ETH is top on the chart of decentralized systems, with proof-of-stake consensus system. While Tezos is more bent at reducing the chances of a hardfork appearing by using the classic proof-of-stake system known as liquid proof-of-stake. Also, Ethereum has much dApps utilized on the network as compared to those used by Tezos.
ii) Security: In terms of security, Ethereum happened to be amongst the most secured networks within the crypto world as a result of the DAO hacked scenarior. The DAO hacked scandal made the network to improve on security. While Tezos since it came after Ethereum, it was timely for them to place security of the network a top priority.
iii) Transaction Speed: Ethereum has a faster transaction speed than Tezos. This is so becasue Ethereum host more dApps. However, Tezos upgraded its network by implementing Delphi which has reduced gas requirements by 70% when executing smart contracts.
iv) Market Value: According to coinmarketcap, Tezos has a market cap of about $4billion, circulating supply of about $766million, and fully diluted market cap of about $4billion. Today, 1 Tezos is equivalent to $6. While Ethereum has a market cap/fully diluted market cap of over $200billion, woth circulating supply of over 115ETH. Today, 1ETH is equivalent to about $2000 and can still increase or decrease due to its volatile nature as seen on the screenshots below.

Screenshot from Phone

Screenshot from Phone

v) Trust: Since both platforms operates on a decentralized system, has made both networks to gain community support. However, since Ethereum has a bigger community they control on blockchain network, and equally stand a chance to gain more support and trust as compared to Tezos.

---

Importance of Tezos Over Ethereum
Tezos implemented Delphi upgrade on its network reducing gas requirements when executing smart contracts. This has given Tezos an upperhand as a result of the fact that it was build with self-amending features.

---

Importance of Ethereum Over Tezos
The fact that Ethereum is the second largest after Bitcoin has made the network having a large number of developers community. This justify the fact that many dApps are hosted on the network. Due to the large number of developers, it is easy to get help when need arise, and equally updates are done frequently to strengthen the network.

In sum, it is advisable to go with the platform that is easy to use looking at its benefits. Also look at the goals of each platform if they tie with your aspirations. While waiting for your positive feedback, remain blessed. Thanks for reading my homework post.