Can I mine Tezos?

No, there is no mining in the Tezos system. Tezos structured their platform and currency to use a proof of stake system. Rather than miners, the Tezos system uses validators. Rather than mining, the Tezos system uses a process called baking.

Can I mine Tezos?

No, there is no mining in the Tezos system. Tezos structured their platform and currency to use a proof of stake system. Rather than miners, the Tezos system uses validators. Rather than mining, the Tezos system uses a process called baking.

In the Tezos system, no one must compete for a selection as a validator. The system uses an algorithm that includes the age of the stake, the size of the holdings, and random selection. The absence of mining also broadens the field of participants in the validation process. In Tezos, every holder of Tez and enter a pool for selection to close the next block. The absence of mining removes the time consuming task of winning a competition to solve a hash problem.

The Tezos model is more than a proof of stake system; it is a liquid proof of stake design. A typical proof of stake system would require the selected person to perform the closing and signing directly. The Tezos system allows token holders the option of delegating without affecting ownership or pledging assets.

In the Tezos model, many holders can take advantage of the baking opportunity. They do not need professional qualifications or the ability to create and equip system nodes. Delegation is an appealing practice because it generates passive income for the XTZ holders. When done through an exchange like Binance or Coinbase, the Tez will not be locked up for the baking period.

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