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According to comments by the project's founder, Bitcoin's issuance rate was indeed inspired by that of precious metals. However, it is implemented algorithmically, of course, which artificially limits the issuance rate rather than actually being an abundant resource getting consumed over time. The bitcoin reward schedule halves the block subsidy every 210,...


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At the beginning of Bitcoin, every newly mined block (about every 10 minutes) creates 50 bitcoins. This is called the block subsidy. About every 4 years, this number cuts in half. Therefore, the peak extraction rate was about the first 4 years of Bitcoin's existence. In fact, it was from 3 January 2009 to 28 November 2012. The block reward includes both the ...


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When the creator of Bitcoin published the original Bitcoin client, it came with rules for an inflation schedule. As a means of bootstrapping the system and distributing the initial supply, miners were allowed to create 50 new bitcoins per block, but this subsidy would get halved every 210,000 blocks. The inflation schedule is a so-called consensus rule which ...


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Firstly, correct me if I'm wrong. When a miner finds a solution for the block and broadcasts it to the other node, all the other nodes verify if it is a correct solution or not. It's very trivial to validate the PoW, just hash the block header and then count how many "leading zeros" that hash contains (note that such description is theoretical. ...


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I will only be rewarded with the fees with respect to the calculations I have made. That's not correct. If you don't mine a complete block, you get nothing at all. Joining a pool will let you get a proportional share of the income (from both the block subsidy and the fees), changing the game from a lottery to a more predictable payout based on your ...


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I add a block, but instead of claiming 6.25 bitcoins, I claim 50 bitcoins. Who is going to verify that my claim is wrong? Every full node will validate every block and enforce that it adheres to the consensus rules. Such a block would be rejected, because it is invalid. For example, the network rejected an invalid block in July 2019 when Antpool mined a ...


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I would assume that the transactions fees would stay or converge to be very low levels, because every miner has always an incentive to add any transaction with a positive fee. Block space is finite, so users are bidding for their position within the next block. Miners will always choose the transactions which have the highest feerate because it makes their ...


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In the event that the Coinbase transaction produces outputs that total less than the eligible block reward, any unclaimed coins are permanently lost. In this specific case, the entire block reward of 12.5 BTC was permanently lost. There have been other instances where miners only partially claimed the full amount they were able to claim, also leading to a ...


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Does Alice pay more or does Bob get less? (the fee has to come from somebody) Alice pays more. It works like this: Alice submits a transaction with inputs adding up to, for example, 0.016 BTC. This transaction includes outputs totaling 0.015 BTC to Bob. The difference, in this example 0.001 BTC, would be the transaction fee in this case. The way to ...


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"Generate" transactions are coinbase transactions. These are a special type of transaction that is included in a block by a miner. They can not exist outside of a block. They generate new coins to an address configured by the miner. Those coins can not be spent until they have 100 confirmations. The reason for this is to prevent a messy scenario in ...


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"In this case, will M2 and M3 gets reward and transaction fee?" Simple answer -> Yes. But block rewards are not spendable right away. They are timelocked for 100 blocks. When this happens other miners will imply which one of these 3 blocks(M1,M2,M3) they accept by exerting pow on top of it. Within a couple of blocks one the blockchains will ...


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For miners lower transaction fee doesn't matters but fee rate does. There are three cases where the miner chooses transactions with low fee rates. 1) When the mempool has three sets of transactions {A}:High fee rate , {B}:Average fee rate and {C}:Low fee rate. If there are few transactions of set A and B the miner will select transactions from C as well. 2)...


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The question contains a brief description of Bitcoin’s history, followed by this: This description of bitcoin's history makes it sound like an awful like a normal commodity such as crude oil …. The net result (according to Hubbert, at least) is that there is a peak in the extraction rate of the commodity. This is often referred to as "peak oil" in ...


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So this gives very useful info, but if I want to see the distribution of all historical transaction fees on the blockchain, how could I do that? The information doesn't look useful. Distribution of fee rates used by unconfirmed transactions can be checked on many websites like https://mempool.space/ https://mempool.observer/ https://btc.bitaps.com/ Fees ...


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Transactions vary a lot in data size, so it's usually more useful to compare the feerates of transactions rather than absolute fees. For example, a transaction that batches fifty payments may pay the same feerate, but a significantly higher fee, while still having a lower fee per payment than a transaction that performs a single payment. You may find this ...


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The transaction fees can be calculated by subtracting each transaction's inputs from its outputs – that difference is the fee. I would guess your best bet is to clone Bitcoin Core, download the entire blockchain, and start parsing the data yourself. If that sounds like too much, I would start here and then ask another question once you get a full node up and ...


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What this means is that going forward the cost of securing currency will keep increasing and it will be difficult to transact in smaller denominations, it will turn into asset that just can not be transacted at smaller sizes, will not really be a payment instrument. I think to keep security but allow for higher transactions by increasing block size to allow ...


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The block reward is composed of two parts, the block subsidy and the transaction fees. While the block subsidy is fixed respective to the height of a block, the transaction fees are a product of the blockspace market. If Bitcoin's exchange rate dropped precipitously, the profitability for miners would drop of course. Since each miner has a different ...


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I understand that a miner who adds a new block can pay the reward to their address per the coinbase transaction, but who verifies that claim? Say, for example, I add a block, but instead of claiming 6.25 bitcoins, I claim 50 bitcoins. Who is going to verify that my claim is wrong? Thanks. You cannot claim 50 bitcoins, it is not possible. There is no way to ...


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If you found yourself in a situation where you owned a machine which, when running, would create a profit for you, what would you do? run that machine set up a business to rent the profits of running that machine to others The only way the second choice really makes sense, is if you rent it out for more money than you'd expect the machine to make for you ...


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How is the fee specified? The transaction fee is paid by the sender. Bitcoin transactions consist of three parts. The inputs specify which unspent transaction outputs (UTXOs) get consumed and satisfy the corresponding locking scripts, the outputs define which new UTXOs are created by the transaction per amounts and addresses, and the header keeps track of ...


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I found out more and wanted to post what I found out: The sender pays the fee The sender can choose how much fees to pay, but if the fee is low, then the transaction can sit there for a while before it can go through (nobody wants to process it), meaning that it can be 5 minutes or up to 72 hours or more. So for this reason, it seems you wouldn't want to ...


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How do miners choose the transaction(s)? However they want. Usually by picking the ones with the highest fees, but also sometimes picking ones that have been unconfirmed for the longest, sometimes prioritizing their own transactions, etc. Does the difficulty vary depending on the number of chosen transactions? No. If not, wouldn't it be advisable to ...


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I am not able to understand the difference between a bitcoin transaction block and a bitcoin as a coin. Transactions are coins? There is no difference. This is because there is no distinct data entity that is a bitcoin. The nearest thing to a coin is a part of a transaction record where a recipient's amount (an output amount) is recorded which has not ...


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Time in bitcoin isn't precise nor reliable, every peer can have their own idea of time and every peer has a view of other peers time that lead a single peer to have knowledge about time drift (adjusted time). Any miner can mine using past or even future timestamps but there are rules that enforce blocks to be generated not too much in the past (using the ...


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It's all about probability. In about 10 minutes, a miner among those 100 will finally achieve to solve the proof of work for the given block before others will. So, he then will write that block on the blockchain, using it's address in the receiving address field of the coinbase transaction, thus obtaining it's reward. what happen if they all mine the block ...


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I read somewhere that if mining pools find a solution, then peer miners in that pool don't verify the solution and straight away go for the mining of next block on top of it. This is kinda unfair for the other miners. Do we have any system to check if a miner has validated the solution or not? The miner would submit the valid block to the pool operator, who ...


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I assume the worst-case scenario, wherein the mempool there are many high fee tx and many low tx to choose from. Low fee tx may take a longer time to confirm. Miners don't have to worry that this tx gets included in other miners' block. This may give a slower miner some advantages in terms of mining. The miner may have taken some extra time to pre-calculate ...


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If you have a fully downloaded blockchain in your local machine, you can parse the raw database with this script. Then you can find in output text files transactions with TX from hash equal to 64 zeros, there is the coinbase transactions. Each of this TX has outputs with Value fields. The sum of this Values is the mining reward that you trying to find.


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