Ethereum vs Tezos: Baking Models

Massive economic security: Over $100B+ in staked ETH secures the chain, making 51% attacks astronomically expensive. This matters for high-value DeFi protocols like Aave and Uniswap, where the cost of failure is immense. The established validator ecosystem (Lido, Coinbase, Figment) provides battle-tested infrastructure.

Self-amending ledger: Upgrades are proposed, tested, and voted on-chain by bakers (validators), enabling seamless, forkless protocol evolution. This matters for enterprise and regulatory-sensitive applications requiring predictable, low-disruption upgrade paths. Over 15 successful upgrades since launch demonstrate this model's effectiveness.

Lower barrier to entry: The liquid proof-of-stake (LPoS) model allows token holders to delegate stakes to bakers without custody loss, promoting decentralization. With 8,000 XTZ ($7,000) needed to bake, it's more accessible than Ethereum's 32 ETH (~$100,000) validator requirement. This matters for broader geographic and economic participation in consensus.

Maximal security and liquidity. If your dApp handles billions in TVL, requires the deepest DeFi integrations (ERC-20, ERC-721), or needs the most robust validator set, Ethereum's established ecosystem is the default choice. Ideal for: Large-scale DeFi, NFT blue-chips, Institutional applications.

Governance-first and upgradeable infrastructure. If your project values on-chain governance, requires regulatory predictability with forkless upgrades, or wants to experiment with novel consensus/execution layers (like Tenderbake or WASM), Tezos offers a nimble, forward-compatible environment. Ideal for: CBDCs, Gaming, Enterprise partnerships, Governance-heavy DAOs.

Specific advantage: Over 29 million ETH staked (~$100B+ at current prices) securing the network. This creates an immense economic barrier to attack, making it the most secure smart contract platform by staked value. This matters for institutional DeFi and high-value asset settlement where security is non-negotiable.

Specific disadvantage: Requires 32 ETH (~$100K+) for a solo validator, locking significant capital. While liquid staking tokens (LSTs) like Lido's stETH and Rocket Pool's rETH offer alternatives, they introduce centralization and smart contract risks. This matters for smaller operators and those prioritizing decentralized participation.

Specific advantage: Any XTZ holder can delegate tokens to a 'baker' without transferring custody, maintaining ownership and liquidity. Bakers only need 6,000 XTZ (~$6K) to operate, enabling broader participation. This matters for encouraging network decentralization and lowering infrastructure overhead for participants.

Specific disadvantage: ~$500M total staked value (vs. Ethereum's $100B+) provides a smaller economic security guarantee. While the LPoS model is elegant, the network's lower total value secured (TVS) is a consideration for enterprise applications requiring the maximum possible cost-to-attack threshold.

$110B+ in staked ETH secures the network, creating an immense cost-to-attack barrier. This deep liquidity and established trust attract large institutions and DeFi protocols like Lido and Rocket Pool. Choose this for applications where maximum capital security is non-negotiable.

Top 5 entities control 50% of staked ETH (Lido, Coinbase, etc.). This creates systemic risk and regulatory scrutiny. Solo staking requires a 32 ETH minimum ($100K), a high barrier. This matters if your protocol's censorship resistance and decentralization are primary concerns.

Protocol upgrades are baked in. Stakeholders vote on and adopt amendments without hard forks, enabling rapid innovation (e.g., Mumbai, Nairobi upgrades). This matters for developers needing predictable, seamless evolution without chain splits or migration chaos.

~$1B Total Value Locked (TVL) vs. Ethereum's ~$60B. Smaller developer activity and fewer major DeFi primitives (e.g., Uniswap, Aave equivalents). This is a trade-off for teams prioritizing niche applications or governance focus over immediate user liquidity.

No minimum stake to become a "baker" (validator). Delegation is native and non-custodial, with rewards automatically distributed. This fosters a more distributed validator set (~400 active bakers). Ideal for broader participation and reducing entry barriers.

Dominant EVM ecosystem with tools like Hardhat, Foundry, and MetaMask. Vast libraries (OpenZeppelin) and audit standards. Tezos uses Michelson/LIGO, with a smaller but growing toolkit (SmartPy, Taquito). Critical for teams that prioritize developer speed and talent availability.