Description: The term ‘baker’ is used in the context of proof-of-stake (PoS) networks to refer to a validator who has the ability to create new blocks on the blockchain. Unlike proof-of-work (PoW) networks, where miners compete to solve complex mathematical problems, in PoS validators are selected to create blocks based on the amount of cryptocurrency they hold and are willing to ‘stake’ or ‘lock’ as collateral. This process is not only more energy-efficient but also allows for greater scalability and speed in transaction validation. Bakers play a crucial role in the security and functioning of the network, as they are responsible for validating transactions and maintaining the integrity of the blockchain. Additionally, by participating in the creation of new blocks, bakers can receive rewards in the form of cryptocurrency, which incentivizes their active participation in the network. In summary, the baker is an essential component in PoS networks, facilitating block creation and ensuring the blockchain operates efficiently and sustainably.
