At its core, Tezos employs a proof-of-stake consensus algorithm called Liquid Proof-of-Stake (LPoS). LPoS allows token holders to participate in the consensus process and validate transactions based on the number of tokens they hold and are willing to "stake" as collateral. This approach enhances the security and efficiency of the network, as it eliminates the need for energy-intensive mining and allows for faster block confirmation times. One of the key features that sets Tezos apart is its on-chain governance mechanism. Tezos utilizes a formalized process for proposing and implementing protocol upgrades, allowing the platform to evolve over time without requiring hard forks. This is achieved through a voting system where token holders can propose and vote on amendments to the network protocol. Those who actively participate in the governance process are rewarded with additional Tezos tokens, incentivizing token holders to engage in the decision-making process and maintain the health of the network. Tezos also employs a functional programming language called Michelson, which is used to write smart contracts on the platform. Michelson is a domain-specific language specifically designed for formal verification, ensuring that smart contracts are more secure and less prone to bugs or vulnerabilities. Additionally, Tezos supports a modular architecture, which allows for the easy integration of new features and protocols without disrupting the existing ecosystem.