Baking

Baking is a mechanism that Tezos uses to add fresh blocks of transactions to its network. This is a delegated proof-of-stake system in which bakers get rewarded for each baked block.

To begin the baking process, or in other words, to become the baker, you will require 10,000 XTZ, which is the native money on the Tezos blockchain. Once you have accumulated or earned 10,000 XTZ, you can choose to become a baker or an endorser.

Since we're talking about the baking process, let's pretend you've decided to become a baker. Bakers that run a full-note to maintain the network generate new blocks on the Tezos blockchain and, as a result, receive incentives in the form of more XTZ tokens. To understand the baking process further, you must first realize that there are two sorts of Tezos blockchain accounts.

First, there are implicit accounts, which are the only accounts that may participate in the baking process. You have the option of baking using your personal balance or with a delegated account or accounts.

Then there are initiated accounts, which may be delegated. These are not allowed to be baked, and a specific sensitive key permits participation in the consensus mechanism. Remember that delegates might be reassigned.


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