A block reward is a set amount of cryptocurrency given to miners for successfully adding a new block of transactions to the blockchain.
In a blockchain network, miners use their computational power to solve complex mathematical problems in order to validate new transactions and add them to the blockchain. As a reward for their efforts, miners receive a set amount of cryptocurrency, known as the block reward, every time they successfully add a new block of transactions to the blockchain.
The block reward is an essential component of the blockchain network, as it incentivizes miners to continue to validate transactions and add new blocks to the chain. Without block rewards, there would be no incentive for miners to participate in the network, and the blockchain would cease to function.
The size of the block reward varies depending on the specific blockchain network. In the Bitcoin network, for example, the block reward started at 50 BTC per block when the network was first launched in 2009. However, the block reward is designed to decrease over time, with the reward halving every 210,000 blocks. This means that the block reward was reduced to 25 BTC per block in 2012, 12.5 BTC per block in 2016, and so on. The current block reward in the Bitcoin network is 6.25 BTC per block.
As the block reward decreases, the incentive for miners to continue participating in the network also decreases. To compensate for this, many blockchain networks also offer transaction fees as an additional incentive for miners. Transaction fees are paid by users who want their transactions to be processed quickly, and are added to the block reward as an additional payment to the miner who successfully validates the block.