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RE: Musing Posts

in #musing-threads6 years ago (edited)

Miners are very important because they provide an awesome service in terms of so many factors which includes bitcoin network security which makes bitcoin safe from attacks....

miners do need a reward/incentive which they will use to pay for the cost of hardware and electricity which they use for the mining....there is a hardware called ASIC which is a mining hardeare that makes bitcoin become secured through what is called “proof of work”,

miners are usually paid with transactions feees and also bitcoin’s block reward,recently i noticed that bitcoin block rewards are usually large and it is one of the major factor that provides earnings to miners,


previously block rewards are usually around fifty bitcoins per block but currently it is 12.5 bitcoins per block.......


Transaction fees

another fact many people need to understand is that the moment most bitcoins have already been mined,


it means that the block reward would no longer be the major source of earnings for the miners,that is where mining fees will now become more effective,mining fees are the feees which will be paid by users who transact on the network and the mining fee will be the major factor that produces good income for the miner....

mining fees are a kind of fees that a user will pay each time he or she makes a transaction on the network

we also need to note that the fees is an incentive to miners in other for them to include transactions on a block and a transaction is confirmed the moment it is included in a block....


and that is why transactions with higher fees tend to get faster confirmation because of course miners would want to maximize their income so there is higher priority on transactions with higher fees paid....