Coinbase: A Leading Cryptocurrency Exchange

Coinbase is number of coins that are created from scratch and given to miners for mining each new block.

What is Coinbase?

The mined cryptocurrencies, such as bitcoin (BTC), are mined and allow anyone to invest the computing power of their computer to make the coins work. Miners collect the latest data on the network, pack them into blocks, protect them with cryptographic hashes and add them to end of the blockchain. The network encourages mining by including a special transaction in each new block that sends a certain number of newly mined (created) coins to the person or organization that mined that block. The coins included in this transaction are called the generation transaction, and the coins included in it are called the block’s coinbase.

When Bitcoin was launched, its Coinbase was 50 BTC. Approximately every four years, that amount is halved. On November 2020, the amount of this coin was 6.5.

The UTXO model is used by Bitcoin and many other mined coins: each transaction consists of inputs and outputs, the coins that are stored at addresses are not literal balances, but rather collections from all previously held payments at that address. The coinbase is an input of the generation transaction, and its output to a similar extent is sent to miners.

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