Baking is a process that is used by Tezos in order to append new blocks of transactions onto its blockchain.
What Is Baking?
Baking is a process that is used by Tezos in order to append new blocks of transactions onto its blockchain. This is a delegated-proof-of-stake system, where bakers receive rewards for each block that is baked.
Now, in order to conduct the baking process, or n other words, in order to become the baker, you will need to have 10,000 XTZ, which is the native currency on the Tezos blockchain. Once you collect or earn 10,000 XTZ, you can either become a baker, or an endorser.
Now, since we are discussing the baking process, let’s assume you have selected to become a baker. Bakers, by running a full-note in order to maintain the network produce new blocks in the Tezos blockchain, and as such, get rewards with additional XTZ tokens.
To explain the process of baking further, you need to understand that there are two main types of Tezos blockchain accounts.
First, you have implicit accounts, which are the only accounts that are allowed to be a part of the baking process. Here, you have the ability to either bake with your own balance or through a delegated account or delegated accounts.
Then you have originated accounts, which are the ones that can be delegated. These cannot become a part of the baking process, and there is a special delicate key that allows partaking in the consensus algorithm. Keep in mind that delegates can also be reassigned.