Baking

Understanding Baking in Tezos

Baking plays a crucial role in the Tezos blockchain as it facilitates the addition of new transaction blocks. Tezos utilizes a delegated-proof-of-stake system, where bakers are rewarded for their contribution in baking each block.

To become a baker and actively participate in the baking process, one must possess a minimum of 10,000 XTZ, the native currency of the Tezos blockchain. Once this threshold is met, individuals have the option to become either a baker or an endorser.

Opting to become a baker entails running a full-node to uphold the network’s integrity and generate fresh blocks on the Tezos blockchain. In return for their efforts, bakers receive additional XTZ tokens as a form of reward.

It is important to note that the baking process involves two distinct types of Tezos blockchain accounts.

The first type is implicit accounts, which exclusively have the privilege to participate in baking. With an implicit account, one can either bake using their own balance or delegate the baking process to another account.

The second type is originated accounts, which can be delegated but are unable to directly engage in the baking process. These accounts necessitate a special delegation key to partake in the consensus algorithm. It is worth mentioning that delegates can be reassigned.