Bakers
Bakers are a type of cryptocurrency users who help secure the network by validating transactions. They do this by staking their coins, meaning they deposit them in exchange for rewards. When someone sends or receives funds, bakers must verify that the transaction is legitimate and add it to the blockchain. Bakers also monitor other nodes on the network to make sure all participants follow protocol and no malicious behavior takes place.
In order to become a baker, one must have enough coins to stake (which can vary based on the specific coin) as well as technical knowledge of how cryptocurrencies work. Additionally, some networks may require additional resources such as servers with high bandwidth connections and reliable uptime in order to become a baker. Once someone has staked their coins, they can start earning rewards for helping secure and validate transactions on the network.
The rewards from baking depend upon several factors including: block reward size (the amount of newly created tokens given out when a new block is mined), total number of bakers active at any given time, overall size of staked coins among all participating bakers (as larger stakes will yield more rewards than smaller ones). Rewards are distributed proportionally according to each baker’s stake size relative to other bakers so those with larger stakes have higher chances at receiving more rewards compared to those with smaller ones.
Overall baking is an important part of many cryptocurrency networks since it helps keep them secure against malicious actors while allowing honest users access to financial services without needing third-party intermediaries like banks or payment processors.
