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What is Block Reward

The block reward is the payment that is offered to a node that is securing the blockchain. In the case of Bitcoin, which has a Proof-of-Work consensus algorithm, these could be the miners. The payment is in the form of the native cryptocurrency in that blockchain. The amount is a predetermined reward for each block, but often that is supplemented with the fees that are paid for the transactions that the block holds. In Bitcoin, the current block rewards are cut in half every four years.  This is called the ‘halvening’.

Crypto Term

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