Tezos (XTZ) is an interesting project, one that is backed by some of the best tech brains in Silicon Valley. It is a Dapps platform, and aims to compete with Ethereum in the smart contracts market. Tezos differs from Ethereum in a number of ways. First, it is quite different in the sense that it employs a different governance model from Ethereum. In Tezos, it is the token holders who will be making decisions on how to govern the network on-chain. Another difference between the two is that in Tezos, smart contracts are formally verified to get rid of bugs. This is a great aspects to this project that gives it a good standing in the Dapps market. But can Tezos really compete with Ethereum (ETH) in the Dapps market?
There are a number of factors that support the possibility of Tezos beating Ethereum in the market. The first one is that you can formally verify the correctness of the code in the smart contract. This reduces the chances of smart contracts getting hacked. Due to this security and reliability of Tezos smart contracts, chances are that it could gain in popularity by businesses looking to make use of smart contracts in different applications. Since adoption is the key to the growth of all blockchain platforms, it then follows that Tezos could gain in adoption and take Ethereum head-on in the Dapps market.
The other edge that Tezos has over Ethereum is the speed of creating smart contracts. Since Tezos smart contracts are formally verified for mathematical correctness, it makes it easier and faster to create smart contracts on Tezos, which could drive up its adoption in the future. The aspect of speed and verifiability could play a crucial role in the future rise of Tezos as an Ethereum competitor.
However, there are some factors that give Ethereum an edge in Dapps market. The first one is its first mover advantage. The fact that it was the first smart contracts platform in the market gives it a huge advantage. This saw it create the ERC20 standard that has been adopted by all exchanges, hence the explosion of Ethereum based tokens in the market. This has entrenched Ethereum in the market, and may make it difficult for other Dapps platforms to thrive in this market.
Related to this is the element of trust. Ethereum ((ETH) has developed trust in the market due to its decentralized nature, and a large developer network. It will be difficult for other projects to gain this level of trust in the market.
That said, it is not easy to tell whether Tezos (XTZ) will overtake Ethereum (ETH) or not. As such, for a savvy investor, the best approach would be to hold both. If Ethereum (ETH) wins, you will win too, and vice versa. Besides, both projects are trading at massive discounts, which makes it easy for an investor to hold both, and make significant gains in the long-run. It’s called hedging your bets.