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Correct. It's quite ingenious actually. "By convention, the first transaction in a block is a special transaction that starts a new coin owned by the creator o
by sigil 14y ago
Correct. It's quite ingenious actually.
"By convention, the first transaction in a block is a special transaction that starts a new coin owned by the creator of the block. This adds an incentive for nodes to support the network, and provides a way to initially distribute coins into circulation, since there is no central authority to issue them."
http://bitcoin.org/bitcoin.pdf http://bitcoin.org/bitcoin.pdf
- codeulike 14y agoBut how does that work when the generation of new coins tails off, but the generation of new blocks does not?
- sigil 14y agoGood question. Longer transaction blocks maybe? Would love to hear this answered.
- codeulike 14y agoFrom whats said here https://news.ycombinator.com/item?id=5548503 https://news.ycombinator.com/item?id=5548503 miners grant themselves a fraction of a bitcoin for each block, and that fraction is what decreases over time.
- sehugg 14y agoEach block also awards the miner a variable fee for every transaction included in that block, so there will always be an incentive to mine: https://en.bitcoin.it/wiki/FAQ#If_no_more_coins_are_going_to_be_generated.2C_will_more_blocks_be_created.3F https://en.bitcoin.it/wiki/FAQ#If_no_more_coins_are_going_to...