Introduction

Tezos (Proof of Stake) is build by keeping in mind security at the top, it is future-proof smart contract system. Tezos has built-in governance mechanism (self-amending protocol) - its protocol can evolve and incorporate new innovations by means of voting by the token holders (empowering the business cases). In short, all the token holders can make and enforce decisions about changes to the network using the network itself.

One of the unique feature of the Tezos ledger is its ability to self-govern by accepting and deploying protocol upgrades, on chain, without hard-forking. Usually hard-forks creates governance issues and conflict of interests. Tezos provides the self-amendment of its own rules set in the protocal. So, innovation and changes to the protocol are possible without the need for a hard fork.

Baking

As Bitcoin has mining, Tezos has baking. Block creation is done by bakers in Tezos. In Tezos bakers obtain the right to create a block. Token holders with minimum 10K Tezos tokens (or rather a roll) can bake. Since not everyone holding tokens will be interested to bake, tokens therefore can be "delegated" to another party. The delgate neither own or control the tokens in any way. It means, the delegate cannot spend your token. If you have less than 10K tokens and you do not wish to delegate, then you can become a delegate and opt for tokens from others so that you have a full roll (10K tokens).

More about roll

In order to speed up the computations and to decide which delegates are selected to bake, the Tezos ledger keeps track of groups of tokens called "rolls". Rolls are aggregated at the delegate level, so the more amout of tokens delegated to you, the more baking power.

Endorsing

It is similar to baking, but in this case you don't specifically create an entire block, but bakers are sometimes called upon to endorse a block, which means they act as witnessess and they check validatity of the block. Endorsers also put up safety deposits and receive rewards. So, every baker also participates in endorsing and vice versa.

Bakers/endorsers earn reward for doing their job in the form of new tokens generated by the protocol. The Tezos tokens grows at roughly 5.5% per year and are rewarded to bakers/endorsers

People working on this project call it as Blockchain 3.0. Come be part of this exciting community and contribute to the team.

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