Useful resources TEZOS

How is XTZ mined?

Tezos tokens are not made using mining like Bitcoin or Ethereum, which are based on proof of work or proof-of-work principle intended to crack complex cryptology algorithms for obtaining permission on mining a new token. Since Tezos uses the principle delegated proof of ownership (Delegated Proof-of-Stake) as a method for creating new tokens, For Tezos, the term baking is used. Baking becomes standard terminology to determine the process of creating XTZ

Frequently Asked Questions

PROOF-OF-STAKE

New Tezos are produced on the principle of proof-of-stake, which is less energy-intensive, more democratic and returns full control to the real owners of Tezos instead of crypto miners. To create a new Tezos, the Tezos blockchain calls the owner randomly. The more Tezos you own, the higher the likelihood that the system will call you. The “bakes” system produces a very small amount of crypto calculations of proof-of-work in order to confirm the new unit, but its order of magnitude is less than that of the traditional proof-of-work.

Pledge as proof of ownership of XTZ

We place a deposit in the blockchain - 8,25% of the amount of XTZ delegated by you. This is done to ensure that people comply with the rules when baking XTZ. This helps to ensure the security of the Tezos platform. As your delegate, we secure your bond at the expense of our own reserve Tezos, thereby reducing your risks.

What you need to create a node?

To create your Tezos based on your own coins, you need:
1. Set up your own server that will continuously work and provide software for creating new Tezos tokens on it.
2. The server must have its own uninterrupted high-speed Internet connection.
3. You need to have several secure hardware wallets that will always be connected to the server for security.
4. You will need to provide a 8,25% security deposit to ensure compliance with the rules for creating Tezos.
5. These 8,25% of your Tezos can be lost forever, if you find violations or problems in creating tokens.

How is the delegation going?

When you delegate your XTZ to us, you retain physical possession of them in your personal wallet. We can do with them absolutely nothing but increase them for you! You simply add the code of our node to your wallet, indicating to the system that we are your delegate.

About voting on Tezos blockchain

Over time, the Tezos platform will have to evolve, and the code will need to be updated. How and when this happens is decided democratically. Unlike proof-of-work blockchains, such as Bitcoin and Ethereum, where all control over the situation is in the hands of crypto miners, Tezos gives control to the owners of Tezos themselves. Each Tezos token is assigned 1 vote. Each Tezos group is a node. The more Tezos you have, the more votes. It's simple. You can use these voices to express your opinion on new software and protocol updates. However, like “nurturing” your share, you must either have your own server node or delegate the right to vote to someone to vote. Thus, when you delegate the right to use your share, you delegate the right to vote.

Why do we need Tezosbakes?

If you are not interested in creating your own node, then we are ready to provide this service for you. As a delegate, we propose to share our total profits. A larger number of rolls allows for greater effect in baking. We provide the delegation service, as many people want a simple and professional solution to the issue.