What is Baking?

Baking in the context of the Tezos blockchain refers to the process of validating transactions and adding them to the Tezos blockchain. Tezos uses a consensus mechanism called proof-of-stake, which aligns the incentives of validators (known as "bakers") and stakeholders to keep costs low, avoid centralization, and put network power in the hands of stakeholders.

The role of bakers in the Tezos network is to validate transactions, add blocks to the blockchain, and participate in the consensus process. In return, they receive a reward in the form of newly minted XTZ, the native token of the Tezos network. Baking is an essential component of the Tezos network as it helps to ensure the security and integrity of the blockchain.

Baking on Tezos is designed to be an open, decentralized process that allows anyone to participate. Unlike other blockchain networks, Tezos is designed to be highly modular and upgradeable, allowing for new features and improvements to be added over time. This makes Tezos a highly attractive option for developers and businesses looking to build on a blockchain that can evolve and adapt to changing market conditions.

In terms of rewards, bakers are incentivized to participate in the network as they receive a portion of the rewards generated by the network. This is intended to ensure that the network remains secure and that bakers have a vested interest in the success of the Tezos network.

In recent years, Tezos has seen an increase in the number of bakers on its network, with more and more people becoming interested in participating in the Tezos ecosystem. In 2019, the Tezos ecosystem was reported to have a large number of bakers spreading across the globe. This growth has contributed to the increased popularity and adoption of Tezos as a blockchain platform.

Simplified Example

Baking on the Tezos blockchain can be compared to being a chef in a bakery. Just like a chef bakes cakes and pastries, a baker on the Tezos blockchain bakes blocks of transactions, verifying and adding them to the blockchain. Just as a chef is responsible for ensuring the quality and safety of the food they prepare, a baker is responsible for the security and reliability of the transactions they bake into blocks. Just as a successful chef must have the right ingredients and equipment to bake delicious treats, a successful baker on Tezos must have enough stake, or "baking rights," to participate in the process. And just as customers visit a bakery for its tasty offerings, users of the Tezos blockchain rely on bakers to provide a secure and trustworthy platform for their digital transactions.

History of the Term "Baking"

The term "baking" in the context of cryptocurrency originated with Tezos in 2017 during its mainnet launch, describing the process of consensus and block validation. While the individual who coined the term is unknown, key contributors likely include Tezos founders Arthur and Kathleen Breitman, the Tezos development team, early community members, and cryptocurrency media.


Ex: Anyone can become a baker. once requests are submitted to join the baker chat room . A community member runs the chat room and acts on these requests.

Ex: Every fully endorsed block is entitled to 40 Tez at most. There are up to 20 Tez paid in baking rewards, and 20 Tez paid in endorsing rewards per block (for a total of 40 Tez per block).

Ex: If a baker behaves dishonestly, the protocol has a built-in mechanism that can cause them to lose their security deposit.

  • Validator: An agent in a blockchain network that is responsible for verifying the validity of transactions, maintaining the ledger, and ensuring consensus among users.

  • Blockchain: A decentralized, digital ledger that records transactions across a network of computers.