Tezos allows anyone who owns its XTZ cryptocurrency to vote on possible changes to its rules, and once a decision is made, the software would automatically update itself to ensure the changes take place.
Using this system, Tezos sought to reduce the chances of forking its blockchain by creating two separate cryptocurrencies with two different prices using a "self-regulating blockchain".
Blockchain Tezos provides many features common to cryptocurrencies. Developers can use this software to run custom programming logic (smart contracts) and design new programs (Daaps; decentralized applications) to replicate products and services.
However, the voting functions required the Tezos blockchain to be split into two parts:
Shell - the code that changes based on user votes, is also responsible for interpreting transactions and administrative operations, and Protocol - the code responsible for sending proposals to the shell for review.
To keep its network in sync, Tezos uses a variant of the classic Proof-of-Stake (PoS) consensus called Liquid-Proof-of-Stake (LPoS). Like traditional PoS mechanisms, LPoS is an algorithm used by computers running Tezos to secure the network, validate transactions, and distribute the newly formed XTZ.