Understanding the Concept of Block Rewards

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WHAT ROLE DOES

BLOCK REWARD PLAY IN BITCOIN MINING?

THE E-BOOK ROUTE

WHAT IS A BLOCK REWARD? The process of solving these cryptographic problems refers to mining. And the coins rewarded to miners for doing so are Block Reward.

WHAT ARE THE BENEFITS OF BLOCK REWARDS? The primary purpose of this system is to reward the first miner who adds a block to the Blockchain successfully.

WHAT IS THE DIFFICULT RATE OF MINING?

The mining difficulty refers to the challenges miners face when finding the appropriate hash for each block. And the difficulty rate of mining is nothing but a measurement unit for mining Bitcoin, which is proportional to the hash rate and difficulty.

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HOW DO BLOCK REWARDS WORK? Miners get rewards in the form of transaction fees and newly minted Bitcoin.

WHAT IS HALVING IN BLOCK REWARD? In 2012, the rewards for creating and adding blocks to the chain were reduced to 25 BTC, followed by 12.5 BTC in 2016. Recently, it was halved to 6.25 BTC in 2020. The process will continue every four years until the block reward reaches zero.

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