Bakers
Bakers Key Points
- Bakers are specific to the Tezos blockchain and play a key role in its Proof-of-Stake (PoS) consensus mechanism.
- The term “Bakers” is a play on the culinary term, reflecting Tezos’ unique approach to blockchain terminology.
- Bakers are responsible for creating and validating new blocks in the Tezos blockchain.
- They are also required to hold a certain amount of XTZ tokens and put them up as a “bond” or “security deposit”.
- They are rewarded in XTZ tokens for their services, but can also lose their bonds if they act maliciously.
Bakers Definition
In the Tezos blockchain, a Baker refers to a node that is selected to create and validate new blocks in the Proof of Stake (PoS) consensus mechanism. This is similar to the role of miners in a Proof of Work (PoW) blockchain. To be a baker, one must hold a certain amount of Tezos’ native currency, XTZ, and put it up as a bond. Bakers are rewarded with XTZ for their services but can also lose their bond if they behave dishonestly.
What are Bakers?
Bakers are unique to the Tezos blockchain.
They are the equivalent of miners in a Proof of Work blockchain, but instead of solving complex mathematical problems, they are selected based on the amount of XTZ tokens they hold and are willing to “bake” or put up as a bond.
Their primary function is to create and validate new blocks on the Tezos blockchain.
Bakers are also responsible for voting on proposed changes to the Tezos protocol.
Who are Bakers?
Bakers can be any individual or entity that holds a significant amount of XTZ tokens and is willing to put them up as a bond.
However, they require a deep understanding of the Tezos network and the technical capability to run a node.
Some bakers are large organizations or groups, while others are individuals who are deeply invested in the Tezos ecosystem.
When do Bakers Operate?
Bakers operate continuously, as the Tezos blockchain operates 24/7.
They are always ready to create and validate new blocks as they are produced approximately every minute.
Where are Bakers Located?
Bakers can be located anywhere in the world.
All they need is an internet connection and the technical capability to run a Tezos node.
Why are Bakers Important?
Bakers are crucial to the operation of the Tezos blockchain.
They validate transactions, create new blocks, and maintain the security and integrity of the network.
By putting up a bond, they have a financial incentive to act honestly.
How do Bakers Work?
Bakers must put up a bond of XTZ tokens.
When they are selected to create a new block, they validate the transactions within it and add it to the blockchain.
They are then rewarded with additional XTZ tokens.
However, if a baker acts dishonestly or fails to validate a block correctly, they can lose their bond.