Baking in Tezos: A Form of Staking

Baking is a process used by Tezos to add new blocks of transactions to the blockchain.

What is baking?

Baking is a process used by Tezos to add new transaction blocks to the blockchain. It is a system of delegated bid proof, where bakers are rewarded for each block baked.

In order to carry out the baking process, or in other words, become a baker, you need to have 10,000 XTZ, which is the national currency on the Tezos blockchain. Once you collect or earn 10,000 XTZ, you can become either a baker or an endorser.

Since we are discussing the process of baking , let’s say you decide to become a baker. Bakers, by performing full-notes to maintain the network, create new blocks in the Tezos blockchain and are therefore rewarded with additional XTZ tokens.

There are two main types of accounts in the Tezos blockchain. First of all, there are implicit accounts, which are the only accounts that are allowed to participate in the baking process. In this case, you have the option of either baking with your own balance or through a delegated account.

In addition, there are origin accounts that can be delegated. These accounts cannot become part of the baking process, and there is a special secret key to participate in the consensus algorithm. Keep in mind that delegates can also be reassigned.