Bakers Definition
Bakers, in the context of cryptocurrency, play key roles in the Tezos blockchain protocol. More specifically, Bakers are the individuals or organizations which are elected to validate and confirm blocks of transactions on the network of Tezos, a self-amending cryptographic ledger.
Bakers Key Points
- Bakers are crucial elements in the governance and function of the Tezos blockchain.
- The baking process in Tezos is akin to mining in other blockchains, but more energy-efficient.
- Unlike standard Proof-of-work systems, Tezos’ “Bakers” participate in a Proof-of-stake consensus algorithm.
What Are Bakers?
Bakers are nodes in the Tezos network that are chosen (based on their stake) to validate transactions and create new blocks. Essentially, they play an important part in securing the network and helping to maintain its decentralized nature.
Who Can Be Bakers?
Any individual, entity or organization that holds a certain amount of Tezos (XTZ) tokens, specifically 8,000 XTZ, can operate a baking node and qualify to be elected as a Baker.
Why Are Bakers Necessary?
The presence of Bakers underpins the integrity and operation of the Tezos network. Their role is to validate and confirm transactions, assist in block creation, and contribute to the network’s security.
When Do Bakers Operate?
Bakers operate continuously as they’re an integral part of the Tezos blockchain. Each Baker’s chance of being selected to validate and create a block is proportional to the amount of XTZ held.
Where Do Bakers Operate?
Bakers operate within the Tezos network, which is a blockchain that’s globally distributed. They can be located anywhere in the world, provided they have the technical requirements and the necessary amount of XTZ.
How Do Bakers Function?
Bakers run software that is connected to the Tezos network. This software validates and broadcasts transactions, and creates new blocks when chosen. Unlike traditional mining, Baking considers the stake of the baker in the network for valid block creation, enhancing power efficiency and favoring decentralization.
