[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"glossary-term-en-coinbase-transaction":3,"glossary-related-en-coinbase-transaction":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},"12509c6a-f6a9-413d-a9ac-943492e27a3d","en","coinbase-transaction","Coinbase Transaction","Coinbase transaction is a special type of transaction in a blockchain that is created as the first transaction in a block. It has no inputs and is used to collect the block reward, including newly generated coins. In Bitcoin, it is the mechanism through which new BTC enters circulation.","\u003Cp>A coinbase transaction is how miners get paid for their work. Unlike normal transactions, where coins are sent from one user to another, this transaction creates new coins and sends them directly to the miner.\u003C\u002Fp>\u003Cp>It appears at the very top of every block and is the first transaction recorded. Instead of taking money from an existing wallet, it generates new Bitcoin according to the network rules. It also includes the transaction fees from all other transactions in that block.\u003C\u002Fp>\u003Cp>Think of it as a reward receipt. When a miner successfully creates a block, the network allows them to include this special transaction to claim their earnings.\u003C\u002Fp>\u003Cp>The name “coinbase” can be confusing because it is not related to any exchange or company. It simply refers to the origin of new coins in the blockchain.\u003C\u002Fp>\u003Cp>This transaction is essential because it both distributes new Bitcoin and incentivizes miners to keep the network running.\u003C\u002Fp>","\u003Cp>A coinbase transaction is created by the miner when building a new block.\u003C\u002Fp>\u003Cp>After collecting transactions, the miner constructs a block and includes a coinbase transaction as the first entry. This transaction has unique properties:\u003C\u002Fp>\u003Cul>\u003Cli>\u003Cp>It has no inputs (no previous coins are spent)\u003C\u002Fp>\u003C\u002Fli>\u003Cli>\u003Cp>It creates new coins based on the current block reward\u003C\u002Fp>\u003C\u002Fli>\u003Cli>\u003Cp>It includes all transaction fees from the block\u003C\u002Fp>\u003C\u002Fli>\u003C\u002Ful>\u003Cp>The miner specifies an address where the reward will be sent. Once the block is successfully mined and accepted by the network, the reward becomes valid.\u003C\u002Fp>\u003Cp>However, coinbase rewards cannot be spent immediately. In Bitcoin, they require a maturity period of 100 blocks before they can be used. This rule adds an extra layer of security to the network.\u003C\u002Fp>\u003Cp>Coinbase transactions are also used to include extra data, such as mining pool identifiers or messages, within the block.\u003C\u002Fp>","\u003Cp>Imagine a mining pool successfully mining a new Bitcoin block using ASIC hardware.\u003C\u002Fp>\u003Cp>The block includes hundreds or thousands of regular transactions, each with fees. At the top of the block, the pool inserts a coinbase transaction that claims the total reward - for example, 3.125 BTC plus fees.\u003C\u002Fp>\u003Cp>If the total reward equals 3.4 BTC, this amount is sent to the pool’s wallet address. The pool then distributes the earnings among miners based on their hashrate contribution.\u003C\u002Fp>\u003Cp>After 100 blocks are added to the blockchain, the reward becomes spendable. Until then, it remains locked as part of the network’s validation process.\u003C\u002Fp>","\u003Cp>This system ensures that miners are compensated while maintaining stability and trust in the blockchain.\u003C\u002Fp>",[],[],[],[18,21,24,27,30],{"answer":19,"question":20},"The term “coinbase” refers to the creation of new coins at the start of a block. It is not related to any company or exchange. It simply describes the origin point of newly generated cryptocurrency.","Why is it called a coinbase transaction?",{"answer":22,"question":23},"Yes, every mined block includes exactly one coinbase transaction. It is always the first transaction in the block and is used to distribute the block reward.","Does every block have a coinbase transaction?",{"answer":25,"question":26},"No, coinbase rewards must go through a maturity period. In Bitcoin, miners must wait for 100 confirmations before they can spend the coins.","Can coinbase rewards be spent immediately?",{"answer":28,"question":29},"If the coinbase transaction is invalid, the entire block is rejected by the network. This means the miner does not receive the reward and must try again.","What happens if a coinbase transaction is invalid?",{"answer":31,"question":32},"Yes, all transaction fees from the block are included in the coinbase transaction along with the newly created coins, forming the total block reward.","Do transaction fees go into the coinbase transaction?","Coinbase Transaction: Definition, Mining Reward, Example","What is a coinbase transaction in Bitcoin? Learn how miners receive block rewards, how coinbase transactions create new coins, and how they differ from regular transactions.","published","2026-04-28T08:03:17.815Z","2026-04-28T08:03:11.259Z",{"items":39},[40,46,52,58,64],{"id":41,"slug":42,"term":43,"shortDefinition":44,"firstLetter":45},"658f6c49-8135-4697-9e31-867419117721","merged-mining","Merged Mining","Merged mining is a process where miners mine two or more cryptocurrencies at the same time, using the same computational power. In Bitcoin mining, this typically means mining Bitcoin and another cryptocurrency that uses the same proof-of-work algorithm, such as Namecoin. By merging the mining efforts, miners can earn rewards from both cryptocurrencies without needing additional resources.","M",{"id":47,"slug":48,"term":49,"shortDefinition":50,"firstLetter":51},"9040bb75-41e2-4e69-9a0b-5a83ff81b06b","blockchain","Blockchain","Blockchain is a decentralized digital ledger that records transactions across a distributed network of computers. It stores data in blocks linked together in chronological order and secured using cryptography. Once recorded, information on a blockchain cannot be easily altered, making it a transparent and tamper-resistant system widely used in Bitcoin and other cryptocurrencies.","B",{"id":53,"slug":54,"term":55,"shortDefinition":56,"firstLetter":57},"b5acfe45-8d2e-4966-9a8f-5910eebc92f5","proof-of-work","Proof of Work (PoW)","Proof of Work is a consensus mechanism used in blockchain networks where miners compete to solve complex cryptographic puzzles to validate transactions and add new blocks. It requires computational effort and energy. In Bitcoin, PoW determines who creates the next block and earns the block reward.","P",{"id":59,"slug":60,"term":61,"shortDefinition":62,"firstLetter":63},"0a4e7519-7618-499a-a8b1-a1365a60882e","cloud-mining","Cloud Mining","Cloud mining is a method of mining cryptocurrencies, such as Bitcoin, without the need to own or operate mining hardware. Instead, miners rent computational power from a third-party provider, who owns and operates the hardware in data centers. This allows individuals to mine cryptocurrencies remotely without the associated costs of purchasing, maintaining, or setting up physical mining rigs.","C",{"id":65,"slug":66,"term":67,"shortDefinition":68,"firstLetter":57},"5c36e3c7-5930-4355-bc67-0cd10561ff3f","pool-mining","Pool Mining","Pool mining is the process of miners combining their computational power to work together on solving the cryptographic puzzles required to add a new block to the Bitcoin blockchain. In a mining pool, miners share their resources and the rewards based on their contribution."]