Every time a Bitcoin transaction is verified, it is added to a block, integrated into the Bitcoin blockchain, and the miner is rewarded. In this post, we'll look at who is doing the verifying and what a miner fee is.

Mining Bitcoin, and other cryptocurrencies based on the idea that blockchain is a decentralized entity that requires the participation of the community to succeed, is referred to as "proof-of-work." Miners verify all transactions, store the information in blocks, and then add them to the blockchain without a central authority in command. The miner solves a cryptographic problem to verify transactions. This requires both computational power and electricity, so the network rewards the miner for their efforts.

Every four years, the block rewards are halved, which happens every 210,000 blocks as a method to prevent inflation while also retaining its value over time. The reason behind this is because our standard currencies (US$, EUR€ etc) lose value over time, while cryptocurrencies use halving to prevent losing its value over time. Think of the purchasing power the US$ had for our parents and grandparents, now the same US$ cannot buy as much, its has lost some of its value over time and will cotineu to do so.

Miner Fee's

To help incentivise miners to complete the work of verifing each transaction, every time that a user makes a Bitcoin transaction, a small fee is charged in order to complete the transaction. This is the same with all blockchain transactions and helps give confidence that the betwork will function to The amount for each miner fee will depend on how busy the network is at the time. In fact the fees can be increased to ensure the transaction is completed quickly.

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