Coinbase Earn: What is Tezos baking? (Lesson 2 of 3)

-[Narrator] In the second lesson, what does Tezos bake? Tezos is a cryptocurrency, blockchain It is designed for safety, open participation, and scalability. Participation in the Tezos network began with Tez. Tez or XTZ is the local mark of the Tezos network. Suppose Emma received some Tez in her Tezos wallet. She can hold, consume or send, Just like any other cryptocurrency. She can do something else. She can bake. Baking Tez is a bit like mining Bitcoin. It protects network security, Verify transactions and distribute rewards. But unlike mining, Baking does not require expensive hardware And a lot of electricity. Instead, all it needs is Tez. This is because of baking on Tezos Used a unique Consensus mechanism, called liquid evidence of staking. It is based on the number of Tez baked by participants Instead of the mining power they control To reward participants with Tez tokens. In this way, people who use the Internet, Tez holders like Emma, It is the person who runs the network and is rewarded.

Suppose Emma wants to use her Tez to get rewards. If she has enough Tez, a counting unit called roll, She can do it herself. What she needs Just one with internet access With a decent computer and a roll of Tez, you can become a baker. Or if Emma doesn’t want to run her own bakery Or there is no complete list, She can still pass Entrust her Tez to another bakery to participate.

The Tezos delegation process is safe and simple. Emma has been controlling her Tez, Baker of her choice Keep a certain percentage of baking rewards as rewards. Regardless of whether she authorizes or not, After an initial period of about 35 days, Baking rewards are distributed. After this initial stage, As long as her baker is still operating , Emma gets rewards every few days. Emma can also send delegation Change to a new baker. This motivates the baker to perform well. The better it does in baking, The more people like Emma, It will get more rewards. In this way, baking on Tezos encourages open participation. Baking rewards Incentivize every Tez holder to participate, No matter how many times they have. When everyone is involved, They contributed valuable resources to the network. Bakers all over the world are verifying transactions, Make Tezos stronger and more distributed. They also voted on the upgrade of the Tezos network, We will explore this in the next lesson. Today, there are hundreds of Tezos bakers. View a copy shared on List of awarded public bakers. When this video was made, Almost 80% of Tez tokens are baked.

This is what open participation looks like..

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