What is the reward system of the block in the blockchain?
In Bitcoin, it is not the block that is rewarded, but the node that mines the new block is rewarded, and the reward consists of two parts:
1. The node can make a transaction in that block called Coinbase, which can be done without the input UTXO. Only the output address, which the node fills in as the address of its own control private key, is equivalent to getting a reward.
2. This node can receive miner's fees for all other transactions in the current block.
Therefore, once the transaction is in the chain, then there is no cost to use it.
Block Reward
Unlike fiat currencies where the supply can be increased at any time by printing more cash, in cryptocurrencies with the Proof of Work (PoW) mechanism, new currency issuance is done through a process called mining, which means that no government or entity has the power to change the rate at which new coins are put into circulation or the maximum supply of cryptocurrencies.
In most PoW blockchains, the issuance of new coins is predictable as well as pre-programmed, resulting in a new coin for every new block mined.
In the Bitcoin system, for example, miners use specialized mining hardware (ASICs) to calculate the correct solution for the block. If the miner finds a valid solution, a new block is mined, and all the transactions contained in the block have been verified on the blockchain.
Since verifying transactions and securing the blockchain requires real-world expensive resources, such as power resources and computing hardware, miners will be rewarded for mining the newly generated tokens in the block. In addition, miners will receive transaction fees for all the transactions they process. These rewards incentivise miners to verify as many transactions as possible and continue to support the operation of the network.
Block rewards are rewards that miners receive after solving relevant mathematical puzzles with computational power and creating new blocks. In the case of Bitcoins, Bitcoins are mined at a fixed but decreasing rate, with a new block created every ten minutes or so, and each new block is accompanied by a certain number of new Bitcoins created from scratch: for every 210,000 blocks mined, the reward is halved over a four-year period. From the initial 50 bitcoins (2010)/block, to 12.5 bitcoins/block after the invention of Bitcoin in 2016, 3.125 bitcoins/block in 2024, and the total will reach nearly 21 million bitcoins in 2040, after which new blocks will no longer contain Bitcoin rewards, and miners' income will come entirely from transaction fees.
Reward Halving
Halving is when the reward for mining Bitcoin is halved in a definite but continually decreasing mechanism after every 210,000 blocks are mined. Mining is used to record and verify information in digital records known as blocks. Every time a math puzzle is solved, a new block is created and added to the blockchain, and the newly generated coin reward is given to the computer that solved the math puzzle after it is confirmed by the blockchain network.
Solo Mining
Solo mining is the most basic reward system where miners are rewarded with blocks directly from the blockchain, Solo miners by running their own full nodes and connecting to other nodes in the blockchain, these miners use their nodes to identify newly mined blocks and transactions to be added to the nascent blocks.
These miners are constantly trying to find a solution for the next block, and when a block is successfully found, they send all their block rewards directly to their designated wallet.
However, Solo miners are extremely rare in large blockchain networks like Bitcoin, as the amount of computing power required to verify blocks at a stable and high frequency is very high. As a result, you can find most of the computing power in the network is in the mining pool.
The mining pool as a whole is like a Solo miner on the network, receiving rewards directly from the blockchain. They allow various smaller-scale miners to connect to their servers, assign work to it, and distribute rewards based on their preferred reward system (PPS, PPLNS or even "solos").
In a mining pool, instead of trying to find a block to find a solution, miners try to find a solution for the pool's work (which is less difficult), which is called mining share.
The Solo reward system in a mining pool simply means that the work given to miners is of the same difficulty as finding a block in the blockchain, and that miners do not directly distribute the block reward they find, albeit in a mining pool. Just like mining separately in a typical blockchain, miners receive all the block rewards, but they usually pay a fee to the pool for processing the entire node and keeping other infrastructure running.
Solo mining is suitable for miners who have a lot of computing power, which allows them to find blocks faster. Because Solo miners do not distribute rewards, if your miner happens to mine a block earlier than statistically expected, your profit will be greatly improved. It is also worth noting that Solo mining directly on the blockchain means that the miners will not have to pay any mining pool fees, which may also boost profits if the miners are prepared to deal with the associated infrastructure.
Solo mining via pools as follow,
https://zsolo.bid/en/btc-solo-mining-pool
https://hashpool.live/#btc-solo
https://mining-pools.com/#btc_solo
https://pool.asicminerspool.com/#btc-solo
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