I understand the basic concepts of Bitcoin and Blockchain.

As I understand, any bitcoin transaction has a transaction fee that is user adjustable. This needs to be above a certain value which can change over time for the transaction to be recorded on a block. Currently this value is about 300 satoshis/byte.

What I can't understand is how the miner is paid this amount? If a miner mines one block which is 1 MB in size, then the miner can record ~4424 transaction on that block (assuming ~226 bytes per transaction).

If everyone who did those transactions used the 300 satoshis/byte transaction fee this translates to ~ 3 Bitcoins.

A bitcoin block is worth 12.5 bitcoins currently. Does this mean that the miner gets ~15.5 bitcoins per block? (assuming the mining is mining solo and not in a pool)

P.S. I obviously tried searching this online and while I am sure the answer is out there but because of hot keywords like bitcoin and blockchain, most result eventually end up to articles, "What is Bitcoin?" xD

  • Indeed. There's nothing wrong with your understanding. See e.g. blockexplorer.com/block/… and look at the first transaction (which goes to the miner) and the fees of the other transactions.
    – raisyn
    May 23 '17 at 13:44