OKCoin Japan becomes a Corporate Baker on Tezos

OKCoin Japan joins the ranks of companies meaningfully participating in the growth of the Tezos blockchain, which includes Google Cloud, Ubisoft, EDF Group, Deloitte Luxembourg, and more.

TZ APAC welcomes OKCoin Japan to the ecosystem as the latest corporate baker on Tezos.

This update kickstarts a collaboration that will see both parties explore synergies in the Web3 circuit of a country that ranks in the Top 20 of the Chainalysis 2023 Global Crypto Adoption Index.

Corporate bakers participate in the Liquid Proof of Stake (LPoS) consensus mechanism and can vote on protocol upgrades, which help maintain the high security and technological advantage of the Tezos blockchain.

OKCoinJapan will also add tez (XTZ) to its staking services from 8 November 2023.

Commenting on this collaboration, David Tng, Managing Director of TZ APAC, said: “We are delighted to have OKCoin Japan as a corporate baker on the Tezos blockchain. The Japanese audience will now have access to staking on the Tezos blockchain through the comfort of a licensed virtual currency service provider and earn rewards. We hope that through this collaboration, we will be able to gather the Japanese audience to explore a vibrant ecosystem of games, DeFi, and art communities building on the Tezos blockchain.”

What is OKCoin Japan?

OKCoin Japan is a Virtual Currency Exchange Service Provider, poised to provide secure, stable, and innovative cryptocurrency trading services to individual and corporate customers in Japan.

Since its establishment in September 2017, OKCoin Japan has focused on building a comprehensive framework of business operation and internal governance to ensure its compliance with the Payment Services Act and related regulations, business guidelines issued by the Japanese financial regulator Financial Services Agency (FSA), and self-regulatory rules promulgated by the Japan Virtual Currency Exchange Association (JVCEA).

What is baking and Corporate Baking on Tezos?

What is baking on Tezos?

The security of the Tezos blockchain is powered by a consensus mechanism known as liquid proof of stake (LPoS).

Each transaction is validated by network participants, known as bakers, who contribute computational power. This goes towards ensuring that all transactions in a block are correct, that the order of transactions is agreed upon, and that no double-spending has occurred.

For maintaining network security, bakers are rewarded with newly minted tez. They also have the opportunity to shape the future of Tezos by voting on protocol amendments.

On the other hand, if bakers approve fraudulent transactions they risk losing their stake, thus ensuring the accuracy and security of the network. This is why bakers are required to “stake” a minimum of 6000 tez as a form of security deposit.

Note: The energy efficiency of the Tezos blockchain comes from the LPoS mechanisms, where bakers aren’t chosen for raw computational power/energy expenditure but by the amount of Tez staked. The more tez a baker stakes, the higher their chance of being chosen to validate transactions and add a new block to the blockchain.

Everyone can participate in the baking process. Users can choose to delegate their tez to bakers and earn rewards for playing a vital role in enhancing the security of the Tezos blockchain.

Delegated stake remains ‘liquid’, which means that users can move their tez whenever they want.

An example of the importance of bakers can be found in the announcement of Kathmandu, Tezos’ 11th protocol upgrade proposal.

“We are happy to see Beacon and Taquito having already added support for Kathmandunet. It is critical to have as many bakers and builders as possible participating in this testnet, by running nodes, producing blocks and deploying apps and infrastructure.”

What Is Corporate Baking?

Simply put, corporate bakers are companies that choose to be bakers.

OKCoin Japan joins the ranks of companies meaningfully participating in the growth of the Tezos blockchain, which includes Google Cloud, Ubisoft, EDF Group, Deloitte Luxembourg, and more.

So why do companies choose to be corporate bakers?

In a nutshell, being able to participate in the governance process aligns with a company’s commercial goals.

Having a say in the direction of the blockchain that’s integrated into their operations, products, or services, can be a key advantage for companies.

Put simply, your business receives more control being a corporate baker with Tezos than it does over the latest Microsoft Office update on the company’s PCs.

Cryptonio.tez provides us with more reasons why companies become corporate bakers and how this strengthens the Tezos blockchain, through an article published on Tezos Spotlight.

1. Innovation: It provides a platform for organizations to stay at the forefront of technological advancements, empowering them to create new products and services around the cutting-edge technology of the blockchain world.


2. Diverse Use Cases: Companies can explore various applications, including creating smart contracts, minting NFTs, and validating transactions with increased certainty.


3. Influence and Control: Corporate bakers have a say in the blockchain’s future direction, giving them proportional control over the technology they plan to integrate into their products and services. This is done thanks to Tezos’ battle-tested on-chain governance feature.


4. Hands-On Experience: Technical and product teams gain valuable experience by actively participating in network maintenance, which can be applied to innovative solutions.

How does having corporate bakers strengthen the Tezos blockchain?

1. Enhanced Security: A greater number of nodes, including corporate bakers, bolster network security by making it more challenging for malicious actors to compromise the system.


2. Increased Confidence: The presence of corporate bakers instills confidence in Tezos’ reliability and integrity, attracting more stakeholders and users.


3. Governance Participation: Corporate bakers often have a significant say in the governance of the blockchain, contributing to its evolution and improvements.


4. Network Growth: The involvement of corporate bakers can lead to increased interest from enterprises, potentially expanding the adoption of the Tezos technology.


5. Innovation and Use Case Development: Tezos can benefit from the innovative applications and use cases that corporate bakers explore and implement.

For more insights into corporate baking, you can read our previous article “Everything you need to know about becoming a corporate baker on the Tezos blockchain”.