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Baking in the context of the Tezos blockchain is the process of creating new blocks of transactions. It is part of Tezos’ delegated proof-of-stake system, where participants known as bakers (or delegates) are responsible for producing new blocks and are rewarded with XTZ tokens, the native currency of Tezos, for each block they bake.

To become a baker, a user must hold a minimum of 10,000 XTZ. Bakers play a crucial role in maintaining the network by running full nodes. There are two main types of accounts on the Tezos blockchain relevant to the baking process: implicit accounts and originated accounts. Implicit accounts are the only ones allowed to directly participate in baking, either with their own balance or through delegated accounts. Originated accounts, on the other hand, cannot directly bake but can be delegated to participate in the consensus mechanism.

Delegation is a key aspect of baking on Tezos, allowing users to participate in the process without running a full node themselves. This system not only incentivizes maintaining the network’s integrity but also enables broader participation in the consensus process. However, proper configuration and management of nodes are essential to prevent issues like double baking within the network.

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