Baking is a process used in certain blockchain networks that employ a proof-of-stake consensus mechanism, most notably Tezos. It involves validating transactions and creating new blocks in the blockchain.

Participants, known as bakers, must stake a certain amount of the network’s native tokens to take part in the process. This stake acts as a form of collateral, ensuring that bakers have a vested interest in maintaining the integrity of the network.

Once a baker is selected, they verify transactions, propose new blocks, and add them to the blockchain. In return for their efforts, bakers earn rewards, typically in the form of additional tokens. Bakers can also delegate their tokens to others who perform the baking, allowing more users to participate in the network without needing to operate their own nodes.

This delegation system increases community involvement while providing bakers with a steady income. Overall, baking plays a crucial role in maintaining the security and efficiency of the blockchain, facilitating its continuous operation and growth.