Block Reward

A block reward is an amount of cryptocurrency that is given as an incentive to the miner who successfully adds a new block to the blockchain. This reward serves as a way to compensate miners for their work in securing the network and verifying transactions. In the case of Bitcoin, the block reward is halved approximately every four years, as part of the protocol's design. This is done to control the rate of new Bitcoin issuance and prevent inflation.

For example, when Bitcoin was first created in 2009, the block reward was 50 BTC. In 2012, the reward was halved to 25 BTC per block. Then, in 2016, it was reduced again to 12.5 BTC. The most recent halving took place in May 2020, which saw the reward reduced to 6.25 BTC per block.

Block rewards vary depending on the cryptocurrency and can be influenced by factors such as the total number of coins in circulation, the current price of the cryptocurrency, and the demand for it. In addition to block rewards, miners can also earn transaction fees for including transactions in the blocks they mine. The combination of block rewards and transaction fees can make mining a profitable endeavor for some individuals and organizations.

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Falling Knife
A "falling knife" is a term used in trading to describe a rapidly declining asset, such as a stock or cryptocurrency. It is characterized by a sharp, sudden drop in price, often resulting in panic selling by investors. The term "falling knife" refers to the danger of trying to catch a falling object, as it can be dangerous and lead to serious injury.
A breakout in trading refers to a significant price movement of an asset, such as a cryptocurrency, beyond a previously established level of support or resistance. This movement is typically accompanied by increased trading volume and can be seen as a signal that the market is gaining momentum in a particular direction.
Traditional Finance, often abbreviated as TradFi, refers to the conventional financial system that operates within regulated institutions such as banks, brokerage firms, insurance companies, and stock exchanges. It encompasses a wide range of financial activities, including banking services, investment management, asset trading, insurance, and more. Unlike decentralized finance (DeFi), which operates on blockchain and smart contract technology, traditional finance relies on centralized intermediaries and regulatory frameworks.

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