Block reward

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Block reward is the incentive given to miners or validators for adding a new block to the blockchain. It typically consists of newly minted cryptocurrency and, in some cases, transaction fees collected from the transactions within that block. Block rewards are a key mechanism in proof-of-work (PoW) and proof-of-stake (PoS) blockchains, ensuring network security and encouraging participation.

What is block reward? It is the compensation miners or validators receive for their role in maintaining the blockchain. As for now, in Bitcoin, the block reward is 3.125 coins per block and is reduced by half approximately every four years in an event called the halving. This controlled issuance helps manage inflation and ensures a gradual distribution of new coins over time.

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