Bakers Summary
- Individuals or entities who validate and secure transactions on the Tezos blockchain.
- Equivalent to miners in other Proof-of-Work (PoW) blockchains but operate under a Proof-of-Stake (PoS) consensus mechanism.
- Earn rewards for their participation in the network through a process called “baking.”
- Play a crucial role in maintaining the integrity and security of the Tezos blockchain.
- Contribute to the decentralized governance of Tezos by voting on protocol upgrades.
Bakers Definition
Bakers are participants in the Tezos blockchain network who are responsible for validating and securing transactions. They operate under a Proof-of-Stake (PoS) consensus mechanism and are rewarded for their contributions through a process known as “baking.”
What Are Bakers?
Bakers are validators in the Tezos blockchain network.
They perform the critical function of validating and securing transactions.
Unlike traditional miners in Proof-of-Work (PoW) systems, bakers operate under a Proof-of-Stake (PoS) consensus mechanism.
This means they are selected to create new blocks based on the amount of Tezos (XTZ) they hold and are willing to “stake” as collateral.
Who Are Bakers?
Bakers can be individuals or entities who own Tezos (XTZ) tokens.
They need to possess a minimum amount of XTZ to be eligible to participate in the baking process.
Both small-scale individual participants and large institutional entities can become bakers, contributing to the network’s decentralization.
When Did Bakers Emerge?
Bakers emerged with the launch of the Tezos blockchain.
Tezos was first proposed in a white paper released in 2014 by Arthur and Kathleen Breitman.
The network went live in 2018, introducing the concept of bakers as a core component of its Proof-of-Stake (PoS) protocol.
Where Are Bakers Located?
Bakers are distributed globally.
They can operate from anywhere in the world as long as they have an internet connection and the necessary technical setup.
This global distribution helps ensure the network’s decentralization and resilience.
Why Are Bakers Important?
Bakers play a crucial role in maintaining the integrity and security of the Tezos blockchain.
By validating transactions and creating new blocks, they ensure the network operates smoothly and efficiently.
Additionally, bakers participate in the governance of Tezos by voting on proposed protocol upgrades.
This decentralized decision-making process helps the network evolve and adapt over time.
How Do Bakers Operate?
Bakers operate by staking their Tezos (XTZ) tokens as collateral.
The more tokens a baker stakes, the higher their chances of being selected to create new blocks.
When a baker is chosen to create a block, they validate the transactions within that block and add it to the blockchain.
In return for their efforts, bakers receive rewards in the form of newly minted XTZ and transaction fees.
This incentivizes them to act honestly and maintain the network’s security.
