Tezos vs Bitcoin
A quick comparison (last updated 25th, September 2024)
Tezos block time is 10 seconds
Transactions on Tezos are final after two blocks (20 seconds). The transaction is final and irreversible, providing certainty.
Tezos can do 8,200 transactions per second at Layer 1
The fees go up when the limit is reached
The average fee according to tzflow.com is $0.001 USD / transaction
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Tezos has 315 governing nodes
The top 5 Tezos bakers by stake control 37.35% of the network. This can be verified on a Tezos blockchain explorer like TzKt.io.
Tezos upgrades frequently
Tezos has a formal governance process where stakeholders can vote on protocol upgrades and changes, enabling the network to evolve and adapt over time without forking.
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Tezos has staking rewards
Tezos offers staking rewards to users who participate in the network's proof-of-stake consensus mechanism by "baking" or "delegating" their tokens, incentivizing network participation and security.
Tezos has smart contracts
Tezos: Supports smart contracts, enabling developers to create decentralised applications (dApps) and execute complex financial transactions on the blockchain.
Tezos has a clear path forward to scale
Rollups on Tezos are integrated into the core protocol, which means that the blockchain's design has built-in mechanisms for executing layer 2 solutions like rollups. This integration can facilitate seamless scalability improvements and helps maintain a more decentralised approach by using the protocol itself rather than external systems.Read more here:
https://spotlight.tezos.com/tezos-x/
Bitcoin has slower and probabilistic finality
Transactions on Bitcoin never considered absolutely final. This means that while it is unlikely for a transaction to be reversed once it's been included in a block and several confirmations have occurred, it's possible.
Bitcoin can do 7 transactions per second at Layer 1
The fees go up when the limit is reached
The average fee according to ycharts.com is $0.87 USD / transaction
Bitcoin has 72 mining pools
The top 5 Bitcoin mining pools by hashrate control 94.49% of the network. This can be verified on a Bitcoin blockchain explorer like blockchain.com
Bitcoin lacks a formal on-chain governance mechanism
This leads to decisions made through community consensus and implemented via "soft forks" or "hard forks," which can and has resulted in splitting the network and community.
Bitcoin does not have staking rewards
Bitcoin does not offer staking rewards as it operates on a proof-of-work consensus mechanism, where miners receive rewards for mining new blocks but regular users do not earn rewards for holding coins.
Bitcoin has limited smart contract functionality
Bitcoin was not designed with smart contracts in mind, and while there is some level of scripting possible, it's not as robust or flexible as Tezos's smart contract capabilities
Bitcoin lightning has a way to go
The Lightning Network operates as a separate layer on top of Bitcoin's main blockchain. The Lightning Network still has a number of limitations in its current form.
To use the Lightning Network, users must open payment channels with sufficient liquidity. Over time, this can lead to a network where the most connected and liquid nodes become central hubs, potentially leading to a degree of centralisation, as these hubs facilitate a large volume of transactions.
Layer 1 Interaction: Interaction with Bitcoin's layer 1 is necessary to open and close channels on the Lightning Network. This means that users still have to conduct on-chain transactions, which can be costly and slow, somewhat negating the benefits of the Lightning Network if the main chain is congested.
Operational Complexity: The requirement to manage channels and liquidity can be technically challenging for average users, potentially leading to reliance on more centralised services that simplify the process but also control user funds.
To find out how to bake tezos, visit tezos.rocks