Baking

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In the context of the Tezos blockchain, baking refers to the process of validating transactions and securing the network. Bakers are similar to miners in proof-of-work systems, but instead of using computing power, they use a proof-of-stake mechanism. Bakers are selected to validate blocks based on the number of XTZ tokens they hold and have staked. In return, they receive rewards in XTZ. Baking helps maintain the integrity of the network while offering an incentive to those who participate in securing it.

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