Tezos

Tezos is an open-source platform for assets and applications that can evolve and upgrade itself without having to split the network. It enables stakeholders to govern protocol upgrades and to implement innovations seamlessly. Tezos provides a platform to create smart contracts and build decentralized applications that can't be censored or shut down. It also allows for formal verification, which helps to increase security by mathematically proving properties about programs. Furthermore, Tezos uses a proof-of-stake consensus mechanism that rewards participants for contributing to the network's security and stability. Participants must make a security deposit to participate in the consensus process, and dishonest behaviour is penalized. Users who do not want to participate in the consensus process can delegate their rights to other users.

“Baking” is the act of signing and publishing blocks to the Tezos blockchain. Bakers are a crucial component of the Proof-of-Stake consensus mechanism by ensuring that all transactions in a block are correct, that the order of transactions is agreed upon, and that no double-spending has occurred.

To bake blocks, a baker needs to participate in Proof-of-Stake, which requires a minimum of 8,000 XTZ (1 roll). The more rolls of tez that a baker owns, the higher your chances are at baking blocks and earning baking rewards.