Block Reward

Block reward is the incentive given to miners in a blockchain network for validating transactions and creating new blocks. When a miner successfully adds a new block to the blockchain, they are rewarded with a certain amount of cryptocurrency. This reward serves as an incentive for miners to continue contributing their computational power to the network.

The block reward is typically a combination of newly minted cryptocurrency coins and transaction fees. As more coins are minted and released into circulation, the overall supply of the cryptocurrency increases. However, many cryptocurrencies have a mechanism in place to gradually reduce the block reward over time. This is known as the halving process, where the reward is reduced by half at pre-determined intervals.

The block reward plays a crucial role in maintaining the security and integrity of the blockchain network. It ensures that miners have an incentive to validate transactions and secure the network against potential attacks. By receiving rewards for their work, miners are motivated to continue participating in the network, ultimately supporting the decentralization and consensus mechanisms of the cryptocurrency.