Baking Definition
Baking refers to the act of signing and publishing new transactions blocks to the Tezos blockchain. It is akin to mining in other blockchain ecosystems but as the Tezos protocol uses Delegated Proof-of-Stake (DPoS) consensus mechanism, creating new blocks requires nodes, named bakers, to take turns rather than compete for the right to do so.
Baking Key Points
- Baking is the process of creating and adding new blocks to the Tezos blockchain.
- In contrast to Proof of Work-based mining, Baking utilizes the Delegated Proof-of-Stake (DPoS) consensus mechanism.
- Nodes involved in the process are named ‘bakers’.
- The right to bake a block is determined by a baker’s stake and gets chosen in a randomized manner.
What is Baking?
Baking, in the context of Tezos, is a choreographed process where nodes (or bakers) participate in the generation of new blocks in the blockchain. It draws its name from the idea of ‘baking’ new transactions into blocks. Unlike systems that use Proof-of-Work consensus mechanisms where participants compete to solve complex mathematical problems, Baking uses Delegated Proof-of-Stake (DPoS) where bakers are chosen to create new blocks based on their stake.
Why is Baking Important?
Baking is crucial to the functioning and security of the Tezos blockchain. The process of baking helps to secure the network, confirm transactions, and distribute new coins. Moreover, it is a more sustainable and energy-efficient method of validating transactions and generating new blocks compared to Proof-of-Work mining.
Where is Baking used?
Baking is exclusive to the Tezos blockchain protocol. It is part of Tezos’ innovative Delegated-Proof-of-Stake mechanism, a system designed to be more fair, inclusive, and energy-efficient than classical Proof-of-Work systems.
Who can perform Baking?
Any entity who owns or is delegated more than 8,000 XTZ, known as a roll, can participate in baking. It is not exclusive to a select group of miners like in Proof-of-Work systems. Bakers are regularly randomly selected to bake new blocks based on their stake.
How does Baking work?
To bake blocks, a node needs to be selected based on the proof-of-stake algorithm. Once chosen, they have a set period to publish a block. If they can’t in the given time, other nodes get the opportunity. The successful baker receives reward in XTZ coins for each block baked. The process of baking new blocks happens roughly every minute in the Tezos blockchain.
