[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"glossary-term-en-block-reward":3,"glossary-related-en-block-reward":38},{"term":4},{"id":5,"locale":6,"slug":7,"term":8,"h1":8,"shortDefinition":9,"simpleExplanationHtml":10,"howItWorksHtml":11,"exampleHtml":12,"contentHtml":13,"aliases":14,"abbreviations":15,"algorithms":16,"faq":17,"seoTitle":33,"seoDescription":34,"status":35,"publishedAt":36,"updatedAt":37},"3de13f17-9e8e-46f9-9a10-af9378547d30","en","block-reward","Block Reward","Block reward is the amount of cryptocurrency given to a miner for successfully validating transactions and adding a new block. It consists of newly created coins and transaction fees included in the block. In Bitcoin, the block reward is reduced over time through a process called halving.","\u003Cp>Block reward is the payment miners receive for doing the work that keeps the blockchain running. When miners process transactions and create a new block, the network rewards them with Bitcoin.\u003C\u002Fp>\u003Cp>This reward has two parts. The first part is newly generated coins - this is how new Bitcoin enters circulation. The second part comes from transaction fees paid by users who want their transactions processed.\u003C\u002Fp>\u003Cp>At the beginning of Bitcoin, the reward was much higher. Over time, it decreases automatically through an event called halving, which happens roughly every four years. Each halving cuts the reward in half, reducing the rate at which new Bitcoin is created.\u003C\u002Fp>\u003Cp>This system helps control supply and ensures scarcity. It also encourages miners to stay active and secure the network, since they earn rewards for their work.\u003C\u002Fp>\u003Cp>For miners, block reward is the main source of income, making it a key factor in determining whether mining is profitable.\u003C\u002Fp>","\u003Cp>Block reward is distributed through the mining process.\u003C\u002Fp>\u003Cp>Miners compete to solve a cryptographic puzzle using Proof of Work. The first miner to find a valid solution gets the right to add a new block to the blockchain. Once the block is accepted by the network, the miner receives the reward.\u003C\u002Fp>\u003Cp>The reward includes:\u003C\u002Fp>\u003Cul>\u003Cli>\u003Cp>Newly minted Bitcoin (subsidy)\u003C\u002Fp>\u003C\u002Fli>\u003Cli>\u003Cp>Transaction fees from all transactions in the block\u003C\u002Fp>\u003C\u002Fli>\u003C\u002Ful>\u003Cp>Bitcoin’s block reward follows a fixed schedule:\u003C\u002Fp>\u003Cul>\u003Cli>\u003Cp>It started at 50 BTC per block\u003C\u002Fp>\u003C\u002Fli>\u003Cli>\u003Cp>It halves every 210,000 blocks\u003C\u002Fp>\u003C\u002Fli>\u003Cli>\u003Cp>It will eventually reach zero after all 21 million bitcoins are mined\u003C\u002Fp>\u003C\u002Fli>\u003C\u002Ful>\u003Cp>As the reward decreases, transaction fees are expected to become a more important source of miner income.\u003C\u002Fp>\u003Cp>Mining difficulty and hashrate affect how often miners earn rewards, while electricity costs and hardware efficiency determine overall profitability.\u003C\u002Fp>","\u003Cp>Imagine a mining pool using ASIC machines to mine Bitcoin. The pool successfully solves a block and adds it to the blockchain.\u003C\u002Fp>\u003Cp>At the current stage of the network, the block reward might be 3.125 BTC (after multiple halvings), plus transaction fees. If the total reward is 3.5 BTC including fees, this amount is distributed among pool participants.\u003C\u002Fp>\u003Cp>Each miner receives a share based on their hashrate contribution. For example, a miner providing 2% of the pool’s computing power would earn approximately 2% of the total reward.\u003C\u002Fp>","\u003Cp>If another halving occurs, the base reward drops further, which directly affects mining profitability unless compensated by higher Bitcoin prices or transaction fees.\u003C\u002Fp>",[],[],[],[18,21,24,27,30],{"answer":19,"question":20},"A block reward includes newly created cryptocurrency (block subsidy) and transaction fees paid by users. Together, these form the total reward a miner receives for adding a block to the blockchain.","What is included in a block reward?",{"answer":22,"question":23},"The Bitcoin block reward changes approximately every 210,000 blocks, which is roughly every four years. This event is called halving and reduces the reward by 50%.","How often does the Bitcoin block reward change?",{"answer":25,"question":26},"Yes, Bitcoin block rewards will eventually reach zero once all 21 million coins are mined. After that, miners will rely primarily on transaction fees for income.","Will block rewards eventually stop?",{"answer":28,"question":29},"Block reward is a key factor in mining profitability. Higher rewards increase earnings, while lower rewards require miners to rely on efficiency, lower costs, or higher Bitcoin prices to remain profitable.","How does block reward affect mining profitability?",{"answer":31,"question":32},"No, only the miner or mining pool that successfully mines the block receives the full reward. In pools, the reward is shared among participants based on their hashrate contribution.","Do all miners receive the full block reward?","Block Reward: Definition, How It Works in Mining, Halving","What is a block reward in Bitcoin? Learn how miners earn rewards, how halving reduces payouts, what affects mining profitability, and how block rewards support network security.","published","2026-04-28T07:59:42.773Z","2026-04-28T07:59:36.641Z",{"items":39},[40,46,52,58,64],{"id":41,"slug":42,"term":43,"shortDefinition":44,"firstLetter":45},"ce33927e-0a72-4330-9722-bd17936a5b44","electricity-cost-per-kwh","Electricity Cost per kWh","Electricity cost per kWh refers to the price a miner pays for each kilowatt-hour (kWh) of electricity consumed by mining equipment. Since Bitcoin mining requires significant computational power, electricity costs are one of the largest ongoing expenses for miners. This cost is typically measured in dollars per kWh and varies depending on the location, electricity provider, and local rates.","E",{"id":47,"slug":48,"term":49,"shortDefinition":50,"firstLetter":51},"5f2d0123-c397-413d-8dca-8c3b0202f6a6","whatsminer","Whatsminer","Whatsminer is a brand of ASIC (Application-Specific Integrated Circuit) mining hardware developed by MicroBT. Whatsminer devices are specifically designed for Bitcoin mining and are known for their high efficiency and performance. These devices are used by miners worldwide to mine Bitcoin.","W",{"id":53,"slug":54,"term":55,"shortDefinition":56,"firstLetter":57},"f70c4c1a-4f6a-44d9-a515-26d4995c9d9d","asic-lifespan","ASIC Lifespan","The lifespan of an ASIC (Application-Specific Integrated Circuit) miner refers to the duration during which the device remains operational and effective for Bitcoin mining. ASIC miners are designed to perform a specific task (mining) and have a finite operational life, influenced by factors like hardware wear, technological advancements, and cooling systems. A typical ASIC miner can last anywhere from 2 to 5 years, depending on maintenance, usage, and environmental conditions.","A",{"id":59,"slug":60,"term":61,"shortDefinition":62,"firstLetter":63},"b629f53f-5dba-4dc0-b655-16f1f17682bd","firmware","Firmware","Firmware is a type of software that is embedded into hardware devices like Bitcoin miners to control their operations. In the context of mining hardware (such as ASIC miners), firmware manages the device’s basic functions, including the mining algorithm, power management. ","F",{"id":65,"slug":66,"term":67,"shortDefinition":68,"firstLetter":69},"c4d77216-c3cd-490f-b859-b4164e695d88","block-height","Block Height","Block height is the number that represents a block’s position in the blockchain, counting from the very first block (genesis block). It indicates how many blocks have been added before a specific block, helping track the length and history of the blockchain in a chronological and verifiable way.","B"]