Mining rewards are very important for cryptocurrency miners. If you want to learn more about the process and its benefits, keep reading.
What are mining rewards?
Mining rewards stand for an amount of cryptocurrency that miners receive after successfully verifying the last transaction of a blockchain network’s transaction block.
Each cryptocurrency has its own reward system and there are different factors that affect how miners get cryptocurrency rewards over longer periods of time (e.g. Halvings)
How to get the rewards?
When a crypto transaction appears in a coin’s network, miners will confirm it by having their nodes solve complex mathematical problems.
Let’s take a look at Bitcoin for example. Once many transactions have been confirmed and a transaction block is mined, all participating miners will try to verify the accuracy of the mined block.
After this verification takes place, the new block stacks on top of the previous block on the Bitcoin blockchain. The miner who solved the final transaction on the block gets rewarded.
What is the Bitcoin reward price?
When Bitcoin was first created, each block reward was 50 BTC. The block reward reduces in half after mining 210,000 blocks, which usually takes around four years to complete.
Since the latest halving in February 2016, block rewards are now 12,5 BTC per block. In the next halving, which will happen in May 2020, block rewards will further decrease from 12.5 to 6.25 BTC.