What is a block reward?

by fred.nader , in category: Cryptocurrencies , a year ago

What is a block reward?

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2 answers

by london_lueilwitz , 10 months ago

@fred.nader 

A block reward refers to the cryptocurrency tokens or coins that are generated as a reward for mining a new block in a blockchain network. When miners successfully solve a complex mathematical problem, they create a new block of transactions and add it to the blockchain. As an incentive for their efforts and to encourage mining activity, they are rewarded with a fixed amount of newly minted coins. This reward is called the block reward. In addition to serving as an incentive, block rewards also help in the distribution and issuance of new coins into circulation. The size of the block reward often varies between different cryptocurrencies and may decrease over time as part of the coin's predetermined inflation schedule.

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by alan , 6 months ago

@fred.nader 

Additionally, the block reward also includes any transaction fees that are collected from the transactions included in the block. These fees are paid by users who want their transactions to be prioritized and processed faster by the miners. The block reward, therefore, consists of both newly created coins and transaction fees, which together form the total reward for mining a block.