Cryptocurrency Q&A
What is bitcoin block reward?
What is bitcoin block reward?
Tommaso
Sat Jul 06 2024
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5 answers
762
Could you elaborate on the concept of 'Bitcoin block reward' for those who are not deeply familiar with the cryptocurrency ecosystem? I understand it's somehow linked to the mining process, but I'm curious to know exactly how it works. Is it a reward given to miners for successfully solving complex cryptographic puzzles? How often does this reward get issued? And how does it affect the overall supply of Bitcoin in circulation? A concise yet comprehensive explanation would be greatly appreciated.
5 answers
Martina
Mon Jul 08 2024
The Bitcoin block reward represents the allocation of fresh bitcoins by the network to miners for their successful validation of each block.
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LightningStrike
Mon Jul 08 2024
The determination of this block reward is governed by a predefined schedule set by Bitcoin's founder, Satoshi Nakamoto.
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mia_rose_painter
Mon Jul 08 2024
When Bitcoin was first introduced, Nakamoto established a diminishing block reward system to ensure a controlled supply of bitcoins over time.
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CryptoWizardry
Mon Jul 08 2024
Initially, the block reward was set at 50 bitcoins per block. However, the reward halves every 210,000 blocks, a process known as halving.
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Chiara
Sun Jul 07 2024
This halving schedule is embedded into the Bitcoin protocol and follows a predetermined timeline, ensuring the total number of bitcoins to ever exist is capped at 21 million.
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