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The similarity between Tezos and Ethereum has led many people to wonder whether to opt for Tezos or the Queen of Cryptocurrencies. That is the other name how Ethereum is referred to. The similarity ranges from the deployment of smart contracts and many others. 2020 was very remarkable for cryptocurrencies, and much crypto revolution happened. Still, the main thing to watch will be how these various blockchain developers will ensure the same progress in practical functionality.

What is Tezos?

Tezos is a new generation Smart Contract platform enabled blockchain protocol written in the Ocaml language to maintain modernity. Tezos attempts to entrust the work of the decision-making process into the users' network, as it does not depend upon the development teams and mining communities to formulate new design choices. In the Tezos network, a developer can attach an invoice to be paid out to their address upon approval and inclusion of their upgrade when he proposes a protocol upgrade.

Tezos protocol incentivizes users to participate in the core development process as it democratizes and decentralizes maintenance. Tezos network uses mathematical proofs to verify that the properties are maintained, and the Tezos network remains decentralized.


Tezos as a blockchain protocol is an open source that was initially operated upon the principles of the Proof-of-Stake (PoS) consensus mechanism, which aims to address the critical barriers faced in adopting Blockchain.

Consensus Mechanism

Reaching consensus is an essential task in distributed networks. Likewise, Tezos's consensus mechanism is based upon the Proof-of-Stake tool. In this mechanism of the consensus algorithm, the participants are chosen according to their function in their stake, which is also used in Tezos governance. Tezos provides the option of delegation, which can be used when a user does not have enough stake to participate on its own or perhaps does not want to set up the needed infrastructure. These delegates may participate in the consensus, but a follow-the coin-strategy mechanism determines their right to participate.

Speed, Security, and Scalability

As this protocol functions over the Proof-of-Stake (PoS) consensus mechanism, those participating need to provide only the necessary computational resources to keep the network working. Due to this feature in the tool, in Tezos, the operating costs are pretty inexpensive compared to those blockchain app development company that use Proof-of-Work (PoW) or Proof-of-Stake (PoS) mechanism.

In terms of security, we can say that Tezos does not disappoint, as it allows any stakeholder to participate in the consensus mechanism and rewards them for contributing to the safety and stability of the network by participating.

Currently, Tezos Blockchain can handle 40 transactions per second, which we anticipate will soon be taken care of in the future.

Smart contracts capabilities

Tezos is like any other blockchain when you think of deploying smart contracts. Tezos allows everything to developers, from creating a smart contract to developing dApps. The native intelligent contract language of Tezos is that Michelson facilitates formal verification, which is necessary and commonly used in mission-critical environments like aerospace, nuclear, etc.

Native token

The native token in Tezos is known as Tez or XTZ and is also known as the Tezzies. Currently, the Tezos currency is listed over most cryptocurrency exchanges from where they can be bought or traded, while there are around 763,306,930 XTZ coins in supply.

Community support

There is an official website of Tezos, where you can find much helpful information and knowledge about their plan regarding releases, updates, and various documentation. The Tezos Commons Foundation is a forum started as a grassroots movement by the community. Its main objective is to grow the ecosystem of Tezos around the world by creating an engaging community. Apart from this, the Tezos are present over Reddit and Telegram for interaction.

What is Ethereum?

Ethereum is a decentralized ledger technology that various companies use to make new programs and value transfers. Ethereum is a very familiar name for any crypto world enthusiast as it has been referred to as the 'Queen of Cryptocurrencies.' Ethereum is one of the first platforms to be part of the earliest blockchain technology; also, Ethereum was the first blockchain project to install innovative contracts technology, eliminating the need for a third party to agree.

In Ethereum, there is a virtual machine named Ethereum Virtual Machine (EVM) that works as an aggregate power of each node so that developers can use it to create decentralized applications (DApps) on Ethereum Blockchain.

In the hall of Blockchain platforms, Ethereum has carved out a niche for itself, but with the entry of newbies, it stands somewhat behind in terms of speed and scalability. Again, there is an announcement from Ethereum Foundation regarding the change in the consensus mechanisms followed by the Ethereum improvement proposal.


Ethereum has been an open-source blockchain protocol since its inception in 2015, and its motive is to create a Decentralized Finance (DeFi) infrastructure for blockchain experts. Under the model of DeFi, you can borrow, lend or earn interest on your cryptos without the need for an intermediary, which is outside the traditional banking system. Therefore both Tezos Vs. Ethereum rank in the same parameter in terms of licensing.

Consensus Mechanism

The consensus mechanism used by Ethereum uses Proof-of-Work (PoW) mechanism to achieve consensus, which is commonly used and is plagued by some issues. One of the main cons of this mechanism is that it consumes a lot of power and is power-hungry. A lot of energy consumption makes it inefficient, whereas the Proof-of-Stake (PoS) mechanism used by Tezos is highly efficient.

Speed, Security, and Scalability

In terms of speed, not just we but almost anyone who knows a bit about blockchain technology knows that Ethereum is slow in handling transactions, which is at around 30 transactions per second at current. Again, it is no secret that Ethereum is more vulnerable to attacks and scalability, as it is way behind new performers. Therefore, in terms of trio speed, security, and scalability, Ethereum disappoints.

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Smart contracts capabilities

When we talk about the Smart Contract deployment, Ethereum not just supports but was one of the first Smart Contract platforms. But like other platforms in Ethereum, when you want to deploy a smart contract, you need to pay in the form of gas, just like a simple ETH transfer. Ethereum supports two developer-friendly languages for writing smart contracts in Ethereum – Solidity and Vyper.

Native token

The standard native token in Ethereum is called Ethereum Request for Comment (ERC-20), which is used for creating and issuing Smart Contracts. These ERC-20 tokens are blockchain-based assets that can hold value and be sent and received. In short ERC-20 receipts brought interoperability between tokens built on the Ethereum Network and created a revolutionary system.

Community support

The Ethereum community has a community teeming with people from various walks of life, including tens of thousands of developers, technologists, users, miners, holders, and enthusiasts worldwide. They have an excellent support forum, where you can join a meetup group, contribute to a project or attend an event to interact with others.

Is Tezos better than Ethereum?

Tezos Vs. Ethereum has its respective strengths and limitations in some of the other areas. Businesses planning to adopt blockchain for their business transformation must do proper research before adopting any of them.

Ethereum is far ahead in crypto, as it is the first blockchain platform designed for creating dApps.

The ability to build Smart Contracts, dApps, or provide access to a decentralized network that makes it possible to utilize computational resources with little upfront investment, is all introduced by Ethereum.

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Tezos vs. Etherum: One on One Comparison of the Various Parameters

Decentralized Finance (DeFi)

The initial DeFi is no doubt built over Ethereum, and it is a fact that some of the best developers in the space are working on projects that utilize Ethereum rather than other cryptocurrencies.

While on the other hand, over Tezos, there aren't any assets on the platform other than a BTC and USD wrapped product on Tezos. Still, suppose you are considering hiring a Tezos developer. In that case, you are on the right path as there is enormous potential in Tezos as a platform where we see more opportunity for significant market cap assets to enter the arena of DeFi. Also, it would be interesting to see how these two Blockchain platforms would compete against each other to woo more investments.

Proof of Stake (PoS)

Here in the Tezos Vs. Ethereum network fight is fierce, as Ethereum is transitioning from Proof-of-Work (PoW) to Proof-of-Stake (PoS), while Tezos is such a platform that never operated within a PoW ecosystem. Therefore, there is no doubt that the ecosystem on which Tezos is working is more robust than the current state of creating new Ethereum via PoW.

Tezos ecosystem is exceptionally transparent, and staking information over it is easy to learn through databases. It can be done either in both ways, from a personal wallet or exchange.

Whereas the same thing over Ethereum is still not functional, we can anticipate in that case, and here Tezos remains far ahead.


In terms of the governance process, the Tezos Vs. Ethereum comparison is a bit complicated, as both have different governance models.

On-Chain Governance – Tezos

Tezos is called a self-amendment chain, as it uses an on-chain governance mechanism that allows itself to upgrade without having to split the network into two different Blockchains. One has to follow a set of processes to introduce a change into the Tezos network. That is when a developer proposes modifications to the protocol and requests compensation for their work. Then the proposed changes get tested by network users to look for in case there are possible issues. After initial testing for a period, the total network votes on the proposal, and if the majority of voters approve the change, the amendment is accepted.

Off-Chain Governance – Ethereum

Compared to Tezos, Ethereum has an off-chain governance mechanism. Here in this mechanism, the proposal or request for updates goes through a panel of core members.

The members hold extensive discussions regarding the proposed changes, and if panels are fruitful, then a trial happens, and changes are implemented on the Ethereum blockchain.

Another lesser-known mechanism for Ethereum is to include a change in the Ethereum ecosystem through Ethereum Request for Comments (ERCs). If an ERC holds, it is converted into an EIP and taken through the same procedure through different technical parameters.

Use Case

Compared to Tezos, Ethereum got many more years in hand to be utilized for many different things. We currently see Ethereum being used for almost everything from gas, lending platforms, and DEXs to NFTs. Therefore, Ethereum has many use cases to boast of, and it has proven that it can be used in many ways we never thought imaginable. Many of these use cases might be new, but it's worth noting that over 9 million Ether are locked in DeFi.

While Tezos is primarily used as a store of value and a staking mechanism, some institutions are working extremely hard to tokenize assets on the platform. Then again, it is worth noting that Tezos lacks the amount of reach and influence Ethereum commands.

What is the future for Tezos and Ethereum?

Tezos versus Ethereum unique sets of benefits and drawbacks concerning the various aspects of both blockchains. Ethereum blockchain development companies contemplating employing blockchain technology for business transformation should undertake the necessary amount of research before deploying any blockchain technology. Since Ethereum was the first blockchain platform created particularly for the creation of decentralized apps, it is light years ahead of other cryptocurrencies (dApps). Ethereum is a distributed computing platform that enables users to create Smart Contracts and decentralized applications (dApps). It also provides access to a decentralized network, making it feasible to employ computational resources with a minimal initial investment. Smart Contracts are a type of smart contract that can automate financial transactions between two parties.

At present, both Tezos and Ethereum have a lot in common right after Ethereum announced its "Serenity" upgrade and other transition to Ethereum 2.0.

Ethereum's announced protocol upgrades should take place on the Ethereum mainnet in several stages. Further, the Shard Chains update is expected to happen with the implementation of on-chain governance. Although Ethereum improvement proposals exist, they are working seriously to bring these changes. However, it is still unknown whether the developers and the community can implement their plans and will this update be successful?

The case is different with Tezos Blockchain, as they are currently working to develop the ecosystem by supporting startups and young development teams.


The above discussion shows that Tezos and Ethereum have already made great strides in changing the world. If you are looking forward to adopting any blockchain for your enterprise, then our advice is to view blockchains objectively and consider how these platforms have different strengths and weaknesses. As every blockchain has strengths and drawbacks, clearly understand what your business demands and which blockchain platform suffices.

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