A Coinbase transaction is the first transaction in a new block of a blockchain. It is a special type of transaction where the miner creates new coins and awards them to themselves as a reward for mining the block. This transaction also includes any transaction fees paid by users for their transactions to be included in the block.
When a miner successfully solves a complex mathematical problem to validate a block of transactions, they are rewarded with a certain amount of new coins. This reward is programmed into the protocol of the cryptocurrency to incentivize miners to secure the network and validate transactions.
The Coinbase transaction is a crucial component of the blockchain’s ecosystem as it ensures the continuous creation of new coins and the operation of the network. It is the mechanism by which new coins are introduced into circulation and distributed to miners who contribute their computational power to maintaining the blockchain.
