Block Reward
Block Reward is the reward received by a miner for processing transactions and adding a new block to the blockchain.
Block Reward is the reward received by a miner for processing transactions and adding a new block to the blockchain.
In simple terms, it is the reward given to a miner after successfully adding a new block of transactions to the blockchain. The reward typically comprises newly minted cryptocurrency tokens and transaction fees.
By offering block rewards, cryptocurrencies incentivize miners to participate in the network. This not only ensures the stability and security of the network but also controls the rate at which new coins are introduced into the ecosystem.
To delve into the specifics, let's use Bitcoin as an example. When a miner solves a complex mathematical problem and successfully adds a new block to the Bitcoin blockchain, they receive a block reward. This reward was initially set at 50 Bitcoins when the network started. However, every four years or so - after about 210,000 blocks are added - a process called "halving" cuts this reward in half. As of July 2023, the current block reward for Bitcoin is 6.25 coins.
