Understanding Coinbase Transactions
In the world of blockchain, transactions can take various forms.
One type of transaction, known as a coinbase transaction, is distinct from others.
Genesis Block and Coinbase Transactions
Unlike regular transactions involving coin exchange between individuals, the Coinbase transaction is responsible for creating new coins.
It is present in the genesis block and every subsequent block, rewarding the miner who successfully mines it.
These reward transactions generate new coins that have not been previously spent.
Coinbase Transactions
Coinbase transactions differ from regular transactions because they only have one input (the coinbase itself) and require 100 block confirmations before the reward can be spent.
The block reward and any transaction fees collected within the block serve as outputs, which can be transferred to one or more addresses.
Understanding the Genesis Block
The genesis block, also known as block zero, holds significant importance in the inception of Bitcoin, the first cryptocurrency.
It was created on January 3, 2009, and serves as the starting point of the blockchain.
As the first block, it has distinct parameters and characteristics compared to subsequent blocks.
Characteristics of a Coinbase Transaction
When a new block is created on the blockchain, it contains a list of validated transactions initiated by users.
Among these transactions, the first one is referred to as the coinbase transaction.
Its value is determined by the current block reward, which is influenced by factors such as halving events.
Since the miner creates the Coinbase transaction, a mechanism is in place to prevent manipulation.
The transaction reward can only be spent after 100 confirmations, ensuring that the block meets all the criteria for being valid.