What is Block Reward?
Let's find out Block Reward meaning, definition in crypto, what is Block Reward, and all other detailed facts.
A block reward is the number of coins miners get after successfully mining a block of a particular currency.
Blockchains are “chains” of individual blocks that have documentation of an exchange that happened in a specific period of time. Those blocks also have an individual cryptographic hashing issue that needs to be solved so that the block can be successfully added to the blockchain.
These hashing problems are solved by miners, and it also refers to “successfully mining a block”. Thus, these miners get a block reward after doing so. The amount of the reward halves approximately every four years.
As an example, Ethereum’s reward is a digital token “ether”, that’s given to a miner after they solve the mathematical problem and give proof of a new block. There isn’t any limitation to how much ether can be created. Besides, compared to Bitcoin, Ethereum has more blocks in the chain.
Bitcoin only has 21 million coins. This was the choice made by the inventor Satoshi Nakamoto, to limit inflation. That’s the main reason why the size of the Bitcoin block halved after the creation of every 210,000 blocks. In 2009, each block reward had a value of 50 BTC. In May 2020, the value went to 6.25 BTC.
The block reward is thought to be at zero in May of 2140, nevertheless, mining might stop being profitable way sooner.