Tezos Promotes Mining Alternative

The smart contract and application platform Tezos believes that baking will become an alternative to mining. Tezos is currently running on BetaNet and is on its way to full launch, although the project is still in its early stages, the company is ready to bake coins.

ArthurB, a representative of Tezos, published an article in which he described the differences between baking and mining:

“For Bitcoin, miners carry out the complex computer calculations that must be done to create a new group of authenticated transactions (block) and add it to the distributed ledger (blockchain). For Tezos, block creation is done by staking. Instead of gaining the right to create a block through calculation, bakers gain this right when the Tezos tokens they own (or are delegated to) are randomly selected to create a block. Baker learns of his right to bake blocks several weeks in advance. Then he must pay a security deposit, which is held for several weeks and then returned to him if no violations occur. This security bond is referred to in technical documentation as a “debenture.” In several other proof-of-stake systems, this deposit is a clearly defined single amount paid by the delegate. In Tezos, such collateral is entirely dependent on the number of blocks that the delegate must “baking.”

Baking is a revolutionary way to extract cryptocurrency from the network. Although mining has its advantages, this alternative provides resistance to DDoS attacks, key protection, and intrusion prevention. Mining is such a common way to create blocks that it will take time for a new method to be adopted, although overall baking does address several of the problems and vulnerabilities that mining is prone to. 

According to cryptodaily