1

According to https://bitcoinfees.info/

The current "cheap" rate for a bitcoin transaction is $22.

How does this get paid to the miners? Is it just one miner that verifies the transaction, puts it into the next block, and collects the $22?

I understand proof of work. But I don't quite understand how a transaction fee gets paid out to a miner. Thanks.

3

The very first transaction in every block is called a coinbase transaction. This coinbase transaction is created by the miner themselves, to pay them the block reward and the fees from the transactions in that block. At the time of writing, the block reward is 12.5 BTC, and then the total of all the fees is added to that, and the coinbase transaction is created to pay themselves that total.

  • So every miner has their own block that they put transactions into (that they verify). The transaction fees get added to the coinbase transaction total for that block. Then whichever miner finds the winning/valid hash wins the block reward and all the transaction fees that are within their winning block. *So basically, one miner gets all the transaction fees (let's not bring mining pools into the picture for now). And all the other miners, who also did work to put transactions into their own respective blocks, are left with nothing. Does this sound correct? – nanonerd Jan 10 '18 at 4:38

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.