Just a note: The block reward is the amount sent to the miner's address in the coinbase transaction. It consists of the subsidy (currently 6.25 BTC) plus the sum of the fees.
People frequently refer to the subsidy as the block reward because fees are generally a small fraction, but that will eventually change as the subsidy goes to 0 and miners continue to receive a block reward.
Topic: How miners gets rewards for their efforts after successfully mining a block. (Read 216 times)
March 28, 2022, 05:04:22 AM
March 24, 2022, 05:42:38 AM
Miners do not send incentives to themselves, they earn from block reward (each new block mined consist of the block reward which is presently 6.25 BTC), the miners bitcoin address will receive the block reward. Also miners include transactions into blocks for the transactions to get confirmed, the fee paid in the transactions are rewarded to the miner that include the transactions into the block mined.
But, yes, the block mining reward is just newly mined and just introduced into circulation.
Miners reward = block mined reward (presently 6.25 BTC) + transaction fee
But, yes, the block mining reward is just newly mined and just introduced into circulation.
Miners reward = block mined reward (presently 6.25 BTC) + transaction fee
This is well explained explicitly and I get the way it is now. Thanks.
March 24, 2022, 05:34:17 AM
-snip-
Question: Is the incentive for miners in (1)and(2) above the same. Please I need clarity on this aspect.
No, they aren't the same.Question: Is the incentive for miners in (1)and(2) above the same. Please I need clarity on this aspect.
Come to think of it: If (2), the "block reward" is only the sum of (1) the transactions' "fees",
then there will be no new coins produced in mining and (2) will be a false statement.
March 24, 2022, 04:30:58 AM
For some more info: The reward that miners receive can be seen in each block in what is known as the coinbase transaction (this has nothing to do with the exchange which shares the name). The coinbase transaction is the first transaction in the block, and sends a maximum amount of the newly generated block reward (6.25 BTC) and the fees from all the transaction in the block to any address or addresses the miner chooses. The coinbase transaction also commonly includes a bunch of other data which do a variety of things, including showing which pool mined the block, a segwit commitment, or commitments from other protocols.
Here's a recent coinbase transaction which shows all of these things: https://mempool.space/tx/6674ca2a525043273a615263efb5048120523a6d3cc645f96f54be276c0f0923
Here's a recent coinbase transaction which shows all of these things: https://mempool.space/tx/6674ca2a525043273a615263efb5048120523a6d3cc645f96f54be276c0f0923
March 24, 2022, 02:52:59 AM
If you want to compare the "incentive" you can use a block explorer and see how much fee does each block have in total. For example in blockchain you can use https://blockchair.com/bitcoin/blocks#f=id,fee_total and as you can see compared to the block reward of 6.25BTC the total fee which is about 0.01BTC to 0.05BTC is very small but still a decent amount ($400 to $2000).
March 24, 2022, 02:40:36 AM
Miners do not send incentives to themselves, they earn from block reward (each new block mined consist of the block reward which is presently 6.25 BTC), the miners bitcoin address will receive the block reward. Also miners include transactions into blocks for the transactions to get confirmed, the fee paid in the transactions are rewarded to the miner that include the transactions into the block mined.
But, yes, the block mining reward is just newly mined and just introduced into circulation.
Miners reward = block mined reward (presently 6.25 BTC) + transaction fee
But, yes, the block mining reward is just newly mined and just introduced into circulation.
Miners reward = block mined reward (presently 6.25 BTC) + transaction fee
March 24, 2022, 02:32:54 AM
1. The transaction fee during transaction is the incentives for miners for including a transaction in a block.
2. When a miner successfully mine a block into the blockchain, the reward for their efforts is to send themselves a new bitcoin that doesn’t exist before.
Question: Is the incentive for miners in (1)and(2) above the same. Please I need clarity on this aspect.
2. When a miner successfully mine a block into the blockchain, the reward for their efforts is to send themselves a new bitcoin that doesn’t exist before.
Question: Is the incentive for miners in (1)and(2) above the same. Please I need clarity on this aspect.
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