Baking Definition
Baking is a term used in the Tezos blockchain protocol that refers to the action of signing and publishing a new block in the chain. This process is equivalent to mining in Bitcoin, but instead of using proof-of-work (PoW), Tezos uses a proof-of-stake (PoS) consensus mechanism. Bakers are chosen randomly to bake or endorse new blocks and are rewarded with Tezos tokens (XTZ) for their work.
Baking Key Points
- Baking is the process of creating new blocks in the Tezos blockchain.
- It is equivalent to mining in Bitcoin but uses a proof-of-stake consensus mechanism instead of proof-of-work.
- Bakers are selected randomly and are rewarded with Tezos tokens (XTZ) for their work.
- Any Tezos token holder can become a baker if they have enough tokens to meet the minimum requirement.
What is Baking?
Baking is a term specific to the Tezos blockchain protocol. It refers to the process of validating transactions and adding them to the blockchain. This is the equivalent of mining in other blockchain systems like Bitcoin, but instead of using a proof-of-work system that requires significant computational power, Tezos uses a proof-of-stake system.
Who can Bake?
Any Tezos token holder can become a baker, provided they have enough tokens to meet the minimum requirement. This is currently set at 8,000 XTZ, which is known as a “roll”. Rolls are randomly selected to bake new blocks or endorse them, and the more rolls a baker has, the higher their chances of being selected.
When and Where does Baking occur?
Baking occurs continuously on the Tezos network as transactions are made. Each baker has a software running on their computer that is connected to the Tezos network. This software automatically performs the baking process when the baker’s roll is selected.
Why is Baking important?
Baking is crucial for the operation and security of the Tezos network. It ensures that transactions are validated and added to the blockchain in a fair and decentralized manner. Bakers are also incentivized to act honestly, as they risk losing their deposits if they attempt to cheat the system.
How does Baking work?
When a baker’s roll is selected, they create a new block by gathering transactions from the network, validating them, and then adding them to the blockchain. They also create a special transaction that assigns the right to bake the next few blocks to other bakers. This process repeats every minute, with a new block added to the chain each time. Bakers receive a reward in XTZ for every block they bake.
