What is Bakers

Updated Feb 4, 2025

Bakers are participants in the Tezos blockchain who are responsible for validating new transactions and creating new blocks.

Bakers Meaning

Bakers play a pivotal role within the Tezos blockchain, taking on responsibilities similar to those of miners in other blockchain ecosystems like Bitcoin. However, there are notable differences in how they function, rooted in the unique consensus mechanism Tezos employs.

Bakers in Crypto and their Roles

In the Tezos network, bakers are entrusted with adding new blocks to the blockchain. Unlike traditional blockchain networks that rely on a proof-of-work system, Tezos uses a delegated proof-of-stake mechanism. Here, validators are referred to as bakers. This system allows Tezos to achieve higher efficiency and lower energy consumption, as bakers are chosen based on their stake in the network rather than solving computationally intensive puzzles.

Each baker is responsible for gathering transactions, validating them, and including them in the next block. This process of creating a new block is called "baking." The more Tez (the cryptocurrency used in Tezos) that a baker holds or has delegated to them, the higher their chances of being chosen to bake the next block. This system incentivizes bakers to operate efficiently and remain honest, as their earnings depend on the quality and accuracy of the block they produce.

Understanding what Bakers in the Cryptocurrency Market Do

Bakers, within the Tezos ecosystem, have additional responsibilities beyond block creation. They partake in the governance and amendment process of the blockchain's protocol. One of the distinctive features of Tezos is its on-chain governance, which enables bakers to have a say in protocol upgrades. Voting rights are proportionate to the amount of Tez a baker holds or has delegated. This innovative approach facilitates decentralized decision-making and helps in evolving the blockchain according to community consensus rather than a central authority.

To become a baker, a participant needs to have a certain amount of Tez—currently set as a requirement of 6,000 Tez to start baking. They must also possess the necessary hardware and software infrastructure to manage this duty reliably. Although the technical requirements are less strenuous than proof-of-work mining, it still necessitates a commitment to maintaining the node and participating actively in the network.

Bakers in Tezos Explained

The concept of bakers underscores Tezos' commitment to security, decentralization, and efficiency. By allowing stakeholders to participate in the baking process, Tezos enhances community involvement and provides a layer of security through economic staking. The protocol’s architecture ensures that bakers have skin in the game, as their financial interests align with the network’s health and integrity.

Defining bakers is not complete without considering the rewards and risks. Bakers earn Tez through baking and endorsing blocks, which is another vital task that bakers undertake—endorsing involves verifying the accuracy of a block baked by another. However, any attempt to act maliciously results in the loss of their deposit, reinforcing the integrity and resilience of the Tezos blockchain.

In essence, bakers are central to Tezos’ operation, embodying the network's core principles and ensuring the seamless functioning of its delegated proof-of-stake system.