Ethereum&rsquo;s reward is a digital token <strong>&ldquo;ether&rdquo;,</strong> that&rsquo;s given to a miner after they solve the mathematical problem and give proof of a new block. There isn&rsquo;t any limitation to how much ether can be created. Besides, compared to <a href=https://www.bitdegree.org/"/crypto/buy-bitcoin-btc/">Bitcoin, Ethereum has more blocks in the chain.</p>\n<p>Bitcoin only has 21 million coins. This was the choice made by the inventor <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/who-is-satoshi-nakamoto/">Satoshi Nakamoto</strong></a>, to limit <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-inflation/">inflation. That&rsquo;s the main reason why the size of the Bitcoin block halved after the creation of every 210,000 blocks. In 2009, each block reward had a value of 50 BTC. 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Have?","featured_image_id":10729,"status":"published","chapter_id":7,"language":"en","order":2,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-invest-in-crypto","featured_image":{"id":10729,"uuid":"3439a1db-9892-404a-b4b6-a1db5a34bca4","public_url":"https://assets.bitdegree.org/crypto/storage/optimized/how-to-invest-in-crypto-featured-image.jpg","path":"crypto/storage/optimized/how-to-invest-in-crypto-featured-image.jpg","original_path":"crypto/storage/original/how-to-invest-in-crypto-featured-image.jpg","name":"how-to-invest-in-crypto-featured-image.jpg","original_name":"how-to-invest-in-crypto-featured-image.jpg","title":null,"alt":null,"width":1024,"height":576,"disk":"spaces","status":"uploaded","readable_file_size":"75.22KB"},"youtube_video":null},{"slug":"ico-vs-ido","title":"ICO vs IDO vs IEO: Which One is the One?","featured_image_id":11310,"status":"published","chapter_id":7,"language":"en","order":3,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/ico-vs-ido","featured_image":{"id":11310,"uuid":"315e8a2b-93a1-4870-be48-a2a09d801663","public_url":"https://assets.bitdegree.org/crypto/storage/optimized/ico-vs-ido-featured-image.jpg","path":"crypto/storage/optimized/ico-vs-ido-featured-image.jpg","original_path":"crypto/storage/original/ico-vs-ido-featured-image.jpg","name":"ico-vs-ido-featured-image.jpg","original_name":"ico-vs-ido-featured-image.jpg","title":null,"alt":null,"width":1024,"height":576,"disk":"spaces","status":"uploaded","readable_file_size":"64.39KB"},"youtube_video":null},{"slug":"what-is-an-airdrop","title":"What are Crypto Airdrops and How to Get Them?","featured_image_id":11359,"status":"published","chapter_id":7,"language":"en","order":4,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/what-is-an-airdrop","featured_image":{"id":11359,"uuid":"7b43c968-1275-4d3e-acb1-1707a43a4014","public_url":"https://assets.bitdegree.org/crypto/storage/optimized/what-is-an-airdrop-featured-image.jpg","path":"crypto/storage/optimized/what-is-an-airdrop-featured-image.jpg","original_path":"crypto/storage/original/what-is-an-airdrop-featured-image.jpg","name":"what-is-an-airdrop-featured-image.jpg","original_name":"what-is-an-airdrop-featured-image.jpg","title":null,"alt":null,"width":1024,"height":576,"disk":"spaces","status":"uploaded","readable_file_size":"66.05KB"},"youtube_video":null},{"slug":"how-to-get-free-crypto","title":"How to Get Free Crypto Assets?","featured_image_id":6542,"status":"published","chapter_id":7,"language":"en","order":5,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-get-free-crypto","featured_image":{"id":6542,"uuid":"4fceb9ab-391e-4ef9-b00d-c871a49878a3","public_url":"https://assets.bitdegree.org/crypto/storage/media/how-to-get-free-crypto.o.jpg","path":"crypto/storage/media/how-to-get-free-crypto.o.jpg","original_path":"crypto/storage/media/how-to-get-free-crypto.jpg","name":"how-to-get-free-crypto.o.jpg","original_name":"how-to-get-free-crypto.jpg","title":null,"alt":null,"width":768,"height":478,"disk":"spaces","status":"uploaded","readable_file_size":"93.93KB"},"youtube_video":null},{"slug":"how-to-arbitrage-crypto","title":"What is Crypto Arbitrage: The Main Principles","featured_image_id":null,"status":"published","chapter_id":7,"language":"en","order":6,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-arbitrage-crypto","featured_image":null,"youtube_video":null},{"slug":"what-is-fud","title":"What is FUD: How to Use It to Your Advantage While Investing in Crypto?","featured_image_id":11394,"status":"published","chapter_id":7,"language":"en","order":7,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/what-is-fud","featured_image":{"id":11394,"uuid":"defd32c5-d3e1-4e66-9f58-e2ee316bad3a","public_url":"https://assets.bitdegree.org/crypto/storage/optimized/what-is-fud-featured-image.jpg","path":"crypto/storage/optimized/what-is-fud-featured-image.jpg","original_path":"crypto/storage/original/what-is-fud-featured-image.jpg","name":"what-is-fud-featured-image.jpg","original_name":"what-is-fud-featured-image.jpg","title":null,"alt":null,"width":1024,"height":576,"disk":"spaces","status":"uploaded","readable_file_size":"65.30KB"},"youtube_video":null},{"slug":"investing-in-cryptocurrency","title":"Investing in Cryptocurrency: How to Manage Your Risks?","featured_image_id":null,"status":"published","chapter_id":7,"language":"en","order":8,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/investing-in-cryptocurrency","featured_image":null,"youtube_video":null},{"slug":"what-is-a-rug-pull-in-crypto","title":"What is a Rug Pull in Crypto?","featured_image_id":6532,"status":"published","chapter_id":7,"language":"en","order":9,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/what-is-a-rug-pull-in-crypto","featured_image":{"id":6532,"uuid":"be8043fb-078c-4487-9af9-d2d9c2b574ea","public_url":"https://assets.bitdegree.org/crypto/storage/media/what-is-a-rug-pull-in-crypto.o.jpg","path":"crypto/storage/media/what-is-a-rug-pull-in-crypto.o.jpg","original_path":"crypto/storage/media/what-is-a-rug-pull-in-crypto.jpg","name":"what-is-a-rug-pull-in-crypto.o.jpg","original_name":"what-is-a-rug-pull-in-crypto.jpg","title":null,"alt":null,"width":768,"height":478,"disk":"spaces","status":"uploaded","readable_file_size":"92.28KB"},"youtube_video":null},{"slug":"how-to-avoid-rug-pulls-in-crypto","title":"How to Spot and Avoid Rug Pulls?","featured_image_id":6555,"status":"published","chapter_id":7,"language":"en","order":10,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-avoid-rug-pulls-in-crypto","featured_image":{"id":6555,"uuid":"80cbed9d-3b4b-45d9-9a85-d2d8108c0f32","public_url":"https://assets.bitdegree.org/crypto/storage/media/how-to-avoid-rug-pulls.o.jpg","path":"crypto/storage/media/how-to-avoid-rug-pulls.o.jpg","original_path":"crypto/storage/media/how-to-avoid-rug-pulls.jpg","name":"how-to-avoid-rug-pulls.o.jpg","original_name":"how-to-avoid-rug-pulls.jpg","title":null,"alt":null,"width":768,"height":478,"disk":"spaces","status":"uploaded","readable_file_size":"111.99KB"},"youtube_video":null},{"slug":"how-to-avoid-crypto-taxes","title":"The Key Legal Techniques of Avoiding Crypto Taxes","featured_image_id":6526,"status":"published","chapter_id":7,"language":"en","order":11,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-avoid-crypto-taxes","featured_image":{"id":6526,"uuid":"1e44162c-ef1d-4010-81b4-9e8d1809aedf","public_url":"https://assets.bitdegree.org/crypto/storage/media/how-to-avoid-crypto-taxes.o.jpg","path":"crypto/storage/media/how-to-avoid-crypto-taxes.o.jpg","original_path":"crypto/storage/media/how-to-avoid-crypto-taxes.jpg","name":"how-to-avoid-crypto-taxes.o.jpg","original_name":"how-to-avoid-crypto-taxes.jpg","title":null,"alt":null,"width":768,"height":478,"disk":"spaces","status":"uploaded","readable_file_size":"99.10KB"},"youtube_video":null}]},{"id":8,"title":"Crypto Analysis","slug":"crypto-analysis","updated":null,"chapter":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters/learn-crypto-analysis.jpg","chapter_simple":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters-simple/crypto-analysis-101.jpg","rating":100,"sections":[{"slug":"what-is-bullish-and-bearish","title":"Bearish and Bullish Markets: Do They Matter?","featured_image_id":null,"status":"published","chapter_id":8,"language":"en","order":1,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/what-is-bullish-and-bearish","featured_image":null,"youtube_video":null},{"slug":"best-technical-analysis-indicators-for-crypto","title":"5 Best Crypto Technical Analysis Indicators You Must Know About","featured_image_id":null,"status":"published","chapter_id":8,"language":"en","order":2,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/best-technical-analysis-indicators-for-crypto","featured_image":null,"youtube_video":null},{"slug":"what-is-candlesticks","title":"Technical Analysis: What are Candlesticks, Trendlines, and Patterns?","featured_image_id":null,"status":"published","chapter_id":8,"language":"en","order":3,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/what-is-candlesticks","featured_image":null,"youtube_video":null},{"slug":"how-to-track-new-crypto-coins","title":"Crypto Tracking: How to Track Your Favorite Coins & Tokens?","featured_image_id":null,"status":"published","chapter_id":8,"language":"en","order":4,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-track-new-crypto-coins","featured_image":null,"youtube_video":null},{"slug":"how-to-research-crypto","title":"Crypto Research Fundamentals & Social Signals: Your Daily Trading Strategy","featured_image_id":null,"status":"published","chapter_id":8,"language":"en","order":5,"modified_content":null,"preview_url":"https://www.bitdegree.org/crypto/learn/how-to-research-crypto","featured_image":null,"youtube_video":null}]},{"id":9,"title":"Mining","slug":"mining","updated":false,"chapter":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters/learn-crypto-mining.jpg","chapter_simple":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters-simple/crypto-mining-101.jpg","rating":80,"sections":[]},{"id":10,"title":"Crypto Terms","updated":false,"chapter":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters/crypto-101-glossary.jpg","chapter_simple":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters-simple/crypto-glossary-101.jpg","rating":100,"sections":["A","B","C","D","E","F","G","H","I","J","K","L","M","N","O","P","Q","R","S","T","U","V","W","X","Y","Z"]}],"nextSection":{"id":107,"original_id":null,"author_id":41,"translator_id":null,"title":"What is Block Producer?","slug":"what-is-block-producer","section":"B","keyword":"Block Producer","status":"published","definition":"a person or a group of people who employ their hardware to verify blocks on Delegated-Proof-of-Stake (DPoS) blockchains.","content":"<p><strong>Block producers</strong>, also known as delegates and witnesses, are the people responsible for producing and verifying <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-block/">new blocks</strong></a> on the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-blockchain/">blockchain. This role is used in blockchain networks where <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-delegated-proof-of-stake/">Delegated-Proof-of-Stake (DPoS)</strong></a> is used as the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-consensus-mechanism/">consensus mechanism</strong></strong></a>.</p>\n<p>The key role of block producers is to collect transaction records and store them in blocks on the blockchain network for validation. Once the blocks are ready for validation, they are transmitted to the blockchain network. The transaction data is uploaded to the blockchain by block producers after validation.</p>\n<p><a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-proof-of-work-pow/">Proof-of-Work (PoW)</strong></a> blockchains like <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/buy-bitcoin-btc/">Bitcoin (BTC)</strong></a> rely on <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-miner/">miners to solve cryptographic puzzles and verify new blocks. This process requires specific hardware and a large amount of computing power.</p>\n<p>Once a miner solves the puzzle, it is broadcast on the blockchain network to establish a consensus among other miners. The block is then added to the chain and the verifier receives a block reward.</p>\n<p>Block producers on <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-proof-of-stake-pos/">Proof-of-Stake (PoS)</strong></strong></a> blockchains use a different strategy to validate blocks and add them to the chain. For example, the <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/buy-eos/">EOS network is governed by decentralized entities called Block Producers.</p>\n<p>The EOS Block Producers are responsible for reaching consensus and producing data and transaction blocks on the blockchain network. The method had features of both Proof-of-Work mining and Proof-of-Stake staking.</p>\n<p>In order to receive the opportunity to add the next block to the blockchain, <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-node/">nodes on Proof-of-Stake networks like <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/buy-cardano-ada/">Cardano have to stake a specific amount of tokens. This requires nodes to place the tokens in a specific <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-wallet/">wallet for a predetermined period.</p>\n<p>Certain variables, like the amount of tokens invested, the time span of assets being staked, and the reputation of the node, can impact the node&rsquo;s chances of being chosen as the next verifier and placing the block on the chain. Otherwise, the validators are chosen randomly.</p>\n<p>In Delegated-Proof-of-Stake networks like EOS, validators are chosen by the token holders rather than a randomized system. DPoS is favorable for the fast block building time, high efficiency, and low risk of forking in the blockchain.</p>\n<p>The EOS <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-whitepaper/">whitepaper outlines the delegation and validation processes. A block is generated by 21 producers, officially called &ldquo;<strong>block producers</strong>&rdquo;. The EOS community selects trusted accounts, referred to as trustees, to act as the block producers.</p>\n<p>All EOS token holders in the EOS mainnet are able to vote for the block producers. The final selection consists of the top 21 candidates who received the most votes from the token holders.</p>\n<p>The selected block producers support the EOS mainnet. They provide processing power and bandwidth. The key responsibility of block producers is gathering transaction data, sorting it into blocks, and transferring them to the rest of the producer network. They then submit the blocks to the blockchain for verification.</p>\n<p>Block producers are rewarded once the verification process is completed. Block producers must continuously generate new blocks. If no new block is generated within 24 hours from the last, the producer is taken off the trustees' list.</p>\n<p>The block producer model employed by EOS has received notable attention from centralized companies like Google Cloud. The <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-big-tech/">Big Tech</strong></a> company is looking into employing a similar blockchain architecture for block generation.</p>","level":"hard","meta_title":"What is Block Producer? Definition & Meaning | Crypto Wiki","meta_description":"Block Producer meaning: Block Producer - a person or a group of people who employ their hardware to verify blocks on Delegated-Proof-of-Stake (DPoS) blockchains.","meta_keywords":null,"language":"en","created_at":"2022-02-15T13:21:17.000000Z","updated_at":"2022-05-13T14:32:23.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-block-producer"},"prevSection":{"id":105,"original_id":null,"author_id":40,"translator_id":null,"title":"What is Block Header?","slug":"what-is-block-header","section":"B","keyword":"Block Header","status":"published","definition":"is a type of header that is used to identify certain blocks inside a blockchain network.","content":"<p>A blockchain has a sequence of different blocks that are used to store information related to transactions within the network.</p>\n<p><strong>A block header is used to identify specific blocks within a blockchain network.</strong> Each block has unique heather to aid with the monitoring of protocol changes. Moreover, the block is hashed repeatedly to create <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-proof-of-work-pow/">proof-of-work mining rewards.</p>\n<p>The blocks are put in a vertical sequence, starting with the &ldquo;<a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-genesis-block/">genesis block</strong></a>.&rdquo; Each header has three layers of block data as well as Merkle root, <a href=https://www.bitdegree.org/"/crypto/buy-bitcoin-btc/">Bitcoin version number, previous block hash, nonce used by miners, and the timestamp of the block.</p>\n<p>To put it simply, the difficulty target is used to figure out how easy the block can be solved by <strong>miners. The nonce</strong> is the worth that miners can adjust to develop unique combinations and form the correct hash.</p>\n<p>Merkle root is the hash of all the operations in a block. The timestamp is supplied so that all project members may have a lasting, sealed record of when an event happened. The timestamp usually reveals the date as well as the time.</p>\n<p>Bitcoin employs block headers to produce speedier documentation of its tasks. Blockchains, in their entirety, can be saved as a standalone file or a simple database. In addition, Bitcoin is considered to be very safe as the result of the rich history of every sequence as well as the number of layers.</p>\n<p>There are three sets of block metadata in the block header. These blocks are stacked on top of one another, and the first block is in the basal layer. When the sequence is finished, the blockchain's endpoint is reached.</p>\n<p>Once in a while, the blocked header is hashed by miners. Therefore, this changes the nonce worth. They get rewarded for keeping the blockchain system's performance effective and steady by developing proof-of-work.</p>\n<p>Moreover, block headers aren't the biggest files. In comparison, the Bitcoin blockchain is far too vast to be stored on a mobile device. You'd need 100GB of space if the chain contained <strong>100,000 1MB blocks.</strong> Block headers, on the other hand, take up just 8MB of storage space. In regards to that, those with limited storage space can still attempt to verify their transactions.</p>\n<p>Because the Merkle root contains all transactions, they might determine if a transaction was included in a certain block afterward. This comes at a cost though, since the user must still depend on a third party to give them access to the crucial data.&nbsp;</p>\n<p>However, light clients don&rsquo;t need to conduct any authentication. Meaning that they have a superior system.</p>","level":"medium","meta_title":"What is Block Header? Definition & Meaning | Crypto Wiki","meta_description":"Block Header meaning: Block Header - is a type of header that is used to identify certain blocks inside a blockchain network.","meta_keywords":null,"language":"en","created_at":"2022-02-15T12:19:59.000000Z","updated_at":"2022-05-13T14:32:23.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-block-header"},"currentChapter":"B","currentSection":"what-is-block-reward","chapterTitle":"B","readingLevel":"easy"},"url":"/crypto/learn/crypto-terms/what-is-block-reward","version":"cdd198d50cbe5c9c21c9329d7c096ffc"}" class="container-fluid d-flex crypto-book p-0">
Handbook Cover Page
Crypto Terms: Letter B

What is Block Reward?

Block Reward MEANING:
Block Reward - is the amount of bitcoin received by a miner after successfully mining a block by solving a cryptographic challenge to generate a new block.
Easy
1 minute

Let's find out Block Reward meaning, definition in crypto, what is Block Reward, and all other detailed facts.

A block reward is the number of coins miners get after successfully mining a block of a particular currency.

Blockchains are “chains” of individual blocks that have documentation of an exchange that happened in a specific period of time. Those blocks also have an individual cryptographic hashing issue that needs to be solved so that the block can be successfully added to the blockchain.

These hashing problems are solved by miners, and it also refers to “successfully mining a block”. Thus, these miners get a block reward after doing so. The amount of the reward halves approximately every four years.

As an example, Ethereum’s reward is a digital token “ether”, that’s given to a miner after they solve the mathematical problem and give proof of a new block. There isn’t any limitation to how much ether can be created. Besides, compared to Bitcoin, Ethereum has more blocks in the chain.

Bitcoin only has 21 million coins. This was the choice made by the inventor Satoshi Nakamoto, to limit inflation. That’s the main reason why the size of the Bitcoin block halved after the creation of every 210,000 blocks. In 2009, each block reward had a value of 50 BTC. In May 2020, the value went to 6.25 BTC.

The block reward is thought to be at zero in May of 2140, nevertheless, mining might stop being profitable way sooner.
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