Choose Your Setup

Choosing Your Baking Setup

Before you install anything, you need to decide how your baker will sign baking operations. The signing device holds the key that authorises your blocks and attestations — it’s the most important security decision you’ll make.

There are three options:

Signer What It Is tz4 Support Cost Recommended?
TezSign Dedicated single-board computer (Pi Zero 2W or Radxa Zero 3) running signing software ✅ Yes ~$20–30 hardware ✅ Yes — best choice for new bakers
Ledger General-purpose hardware wallet (Nano S Plus / Nano X) ❌ No ~$80–150 ⚠️ Legacy — still supported
Soft key Private key stored in a file on the baking node ❌ N/A Free 🚫 Not recommended

⚠️ WARNING: Ledger and tz4

Ledger hardware wallets do not support tz4 consensus keys for baking operations. Modern Tezos protocols use tz4 (BLS12-381) keys for enhanced efficiency. If you start with a Ledger you will be limited to tz1 keys for baking. TezSign supports tz4 natively.

Decision Tree

Use this guide to find the right setup for you:

Are you setting up for the first time?
│
├── YES ──► Use TezSign ✅
│            Cheap, secure, tz4-capable, purpose-built for baking.
│            → See: Baking with TezSign
│
└── NO — I already have a Ledger
     │
     ├── Am I happy to stay on tz1 keys?
     │    └── YES ──► Keep your Ledger, continue as-is ✅
     │
     └── Do I want tz4 consensus keys or maximum future-proofing?
          └── YES ──► Migrate to TezSign
               → See: Baking with TezSign (migration section)

Detailed Comparison

TezSign ✅ Recommended

TezSign turns an inexpensive single-board computer into a dedicated hardware signing device. It connects to your baking node over USB and signs nothing except Tezos baking operations.

Pros:

  • Supports tz4 (BLS12-381) consensus keys — required for cutting-edge protocol features
  • Purpose-built: 100% of its job is signing baking ops
  • Can stay plugged in 24/7 without conflicts
  • Very affordable (~$20–30 for the hardware)
  • No need to stop the baker to vote on governance proposals (use a second device)

Cons:

  • Requires a small amount of initial setup (flashing an SD card / eMMC)
  • Less familiar to people who already own a Ledger

Supported hardware:

  • Raspberry Pi Zero 2W
  • Radxa Zero 3

💡 TIP: You can buy two Pi Zero 2W boards for less than the price of one Ledger. Running a primary + backup TezSign is the gold standard setup.

→ Get started: Baking with TezSign

Ledger ⚠️ Legacy

Ledger Nano S Plus and Nano X are general-purpose hardware wallets that can be used for baking. They are no longer the recommended option for new bakers but remain fully supported.

Pros:

  • Many existing bakers already own one
  • Well-known, battle-tested device

Cons:

  • Does not support tz4 consensus keys for baking — you are locked to tz1 keys
  • General-purpose device, not optimised for 24/7 baking
  • Can’t be used for governance voting at the same time as baking (must stop baker first)
  • Original Nano S is not supported (too slow — causes missed attestations)

ℹ️ INFO: If you already bake with a Ledger and are satisfied, there is no urgent need to migrate. tz4 keys provide efficiency and future-proofing, but tz1 baking continues to work.

→ See also: Ledger vs TezSign

Soft Key 🚫 Not Recommended

A soft key stores your private baking key as a file on the baking node itself. If the node is compromised, the key is exposed.

⚠️ WARNING: Soft keys are not recommended for any baker with real stake. Use a hardware signer. Soft keys may be acceptable for testnet or experimentation only.

Role Hardware
Baking node Dedicated computer — see Hardware Requirements
Primary signer TezSign (Pi Zero 2W or Radxa Zero 3)
Backup signer Second TezSign (strongly recommended)
UPS Battery backup for node + ISP router

💡 TIP: A complete new-baker setup — dedicated mini PC + two TezSign devices — can be assembled for under $200. See Hardware Requirements for specs.

Next Steps

Any questions/comments/concerns? Please contact the Tez Capital team on Discord or Telegram