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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 of how Ethereum is referred too. The similarity ranges from the deployment of smart contracts and many others. The year 2020 was very remarkable for cryptocurrencies and much crypto revolution happened, but the main thing to watch will be how these various Blockchain platforms will ensure the same sort of progress in the practical functionality.

What is Tezos?

Tezos is a new generation Smart Contract platform enabled Blockchain protocol that is written in the Ocaml language to maintain modernity. Tezos attempts to entrust the work of the decision-making process into the network of users itself, 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 its users for participation in the core development process, as it democratizes the development process and decentralizes maintenance. Tezos network uses mathematical proofs to verify so 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 key barriers faced in adopting Blockchain.

Consensus Mechanism

Reaching consensus is an important task in distributed networks, likewise in Tezos the consensus mechanism is based upon the Proof-of-Stake mechanism. In this mechanism of the consensus algorithm, the participants are chosen in accordance of their function in their stake and this mechanism is also used in Tezos governance. Tezos provides the option of delegation, which can be used when a user does not has 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 their right to participate are determined by a follow-the coin-strategy mechanism.

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 mechanism, in Tezos the operating costs is quite inexpensive as compared to those Blockchain protocols whom use Proof-of-Work (PoW) or Proof-of-Stake (PoS) mechanism.

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

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

Smart contracts capabilities

Tezos is just like any other Blockchain when you think of deploying smart contracts, Tezos allows everything to developers right from creating a smart contract or developing dApps. The native smart contract language of Tezos is 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. As of now, the Tezos currency is listed over a majority of cryptocurrency exchanges from where they can be brought 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, know about their future plan regarding releases, updates, and various documentation. The Tezos Commons Foundation is a forum, which is started as a grassroots movement by the community and the main objective of it is to grow the ecosystem of Tezos around the world by creating an engaging community. Apart from this, the Tezos is present over Reddit, 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 smart contracts technology, which eliminates the need for a third party to enter into an agreement.

In Ethereum, there is a virtual machine named Ethereum Virtual Machine (EVM) that works as an aggregate power of each of the nodes 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 is an open-source Blockchain protocol since its inception in 2015 and its motive of it is to create a Decentralised Finance (DeFi) infrastructure. Under the model of DeFi you can borrow, lend or earn interest on your cryptos and all that 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 is plagued by some issues. One of the main cons of this mechanism is that it consumes a lot amount 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. Now again it is no secret that Ethereum is more vulnerable to attacks and also in terms of scalability same happens, 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, surely Ethereum not just supports but it 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 form of gas just like a simple ETH transfer. Ethereum supports mainly two developer-friendly languages for writing smart contracts in Ethereum – Solidity and Vyper.

Native token

The standard native token in Ethereum is known as 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 can be sent and received. In short ERC-20 tokens brought interoperability between tokens built on the Ethereum Network that created a revolutionary system.

Community support

Ethereum community has a community teaming with people consisting from various walks of life which includes tens of thousands of developers, technologists, users, miners, holders, and enthusiasts all over the world. They have a great support forum, where you can join a meetup group, contribute to a project or just attend an event to interact with others.

Is Tezos better than Ethereum?

Tezos Vs Ethereum both are having their respective strength and limitations in some or the other areas.

Businesses planning to adopt Blockchain for their business transformation need to do proper research before adopting any of them.

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

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

Let's build together on Tezos

Now, let’s have one on one comparison between Tezos Vs Ethereum Blockchain network on 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 yet other than a BTC and USD wrapped product on Tezos. Still, there is huge potential in Tezos as a platform where we see more opportunity for large 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 Tezos Vs Ethereum network fight is fierce, as Ethereum is in process of 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 Tezos is working is more robust than the current state of creating new Ethereum via PoW.

Tezos ecosystem is extremely transparent and staking information over it is easy to learn through databases and it can be done from either both of the ways like from a personal wallet or from an exchange.

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


In terms of the governance process, the Tezos Vs Ethereum comparison is bit complicated, as both are having different governance model.

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 some change 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 entire 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 any updates goes through a panel of core members.

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

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

Use Case

Compared to Tezos, Ethereum got many more years in hand to be utilized for many different things. As in present, we see Ethereum being used for almost everything right from gas, lending platforms, DEXs to NFTs. Therefore, Ethereum has lots of use cases to boast of and it had 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 currently primarily used as a store of value and a staking mechanism, again there are certain institutions working extremely hard to tokenize assets on the platform. Then again it is worth noting that Tezos certainly lacks the amount of reach and influence Ethereum commands.

What is the future for Tezos and Ethereum?

At present both Tezos and Ethereum have a lot in common right after Ethereum announced its “Serenity” upgrade and further transition to Ethereum 2.0.

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

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


The above discussion gives a simple idea that both Tezos and Ethereum both 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 think about how these platforms have different strengths and weaknesses. As every Blockchain has some strengths and some drawbacks, so have a clear understanding of what your business demands and which Blockchain platform suffices them.

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Frequently Asked Questions

How Tezos Is Different. One of the distinctive features that distinguish Tezos is the way it manages its business. Many early blockchains rely on teams of developers and mining communities to make innovative design decisions. But, Tezos attempts to integrate the decision-making process into the users’ network that is the blockchain itself.

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