Ethereum Block Reward: A more detailed review of its source and issue
One of the biggest and most popular cryptocurrency, Ethereum has been fascinating investors and researchers with its complex mechanics. One aspect that has aroused curiosity is the block bonus mechanism, especially whether it comes to the Bitcoin cashier or whether the game is another more complex process.
Block fee mechanism
In Ethereum, every 2016 block (about two weeks) minister who added the most valuable content to Blockchain, with a certain amount of new etheric brands (ETH) and sometimes with other cryptocurrencies such as Dash, Litecoin or Bitcoin Cash. This reward is known as a block fee.
Is it Bitcoin cash?
So, will the Ethereum block reward come to the Bitcoin cashier? The answer is no. Instead, it is given by the “Ethereum GAS” mechanism, which is essentially a currency unit that represents the computational effort needed to validate network events.
In other words, miners do not receive their reward in Bitcoin (BTC), but rather in the ether (ETH). This is because the Ethereum is built on the Pow Certificate (Pow) consensusal algorithm, where miners compete in order to solve complex mathematical puzzles in return for the right to add new blocks to the block chain and to validate events.
Coinbase event
In order to receive his reward, the mining worker must first deposit it in their “Coinbase” account. This is done by the process called “Coinbase Transaction”, which is essentially a fee from Ethereum network to a mining worker wallet. The 12.5 ETH received by each mining worker will be added as a deposit to their Coinbase account.
How do miners get their reward?
Here’s the following:
- Once the block is mined, the miner adds it to the block chain.
- The ministry then deposits a relevant block fee in their Coinbase account.
3.
- If confirmed, the event will be confirmed and added to the block chain.
conclusion
In summary, while the Ethereum block fee is derived from the ether (ETH), which was excavated via its POW consensus algorithm, it will not come directly to the Bitcoin cashier. Instead, miners receive their reward in ETH through Coinbase events. The process may seem complicated, but it provides a safe and transparent way to share a block fee between all participants on the Ethereum network.
For more information
- It should be noted that the Ethereum team has stated that it intends to raise the block fee to 14,000 ETH, which can lead even more mining workers who compete for rewards.
- The price of Ethereum gas is calculated on the basis of the calculated efforts needed to resolve puzzles and validate events. As the network increases in size and complexity, the price of Ethereum gas may vary accordingly.
The purpose of this article is to provide a comprehensive understanding of how the Ethereum block fee mechanism works, including its source and issue process. Although it may seem complicated at first glance, this complex system is essential to understand the underlying mechanics of the Ethereum network.