The block reward is a reward given to miners who validate a block in the blockchain. Essentially, it is a form of incentive for users to participate in the network by incentivizing miners to secure the network and add new blocks. In more technical terms, the block reward is the number of coins that miners receive in exchange for successful validation of a block.
Bitcoin’s block reward is currently 6.25 BTC per block. Miner’s also receive transaction fees in addition to the block reward for their efforts. The block reward will halve over time. This means that the amount of coins that miners receive for successfully validating a block will decrease over time.
This incentivizes miners to work quickly and efficiently so that they can receive more coins for their effort. The block reward also serves to create new coins. Since the amount of coins generated by mining cannot exceed the total of coins provided by the block reward, the supply of coins for circulation is directly dependent on the block reward.
By halving this reward, the rate at which new currency is generated slows, maintaining scarcity and preventing inflation. The block reward is an important part of cryptocurrency mining. It incentivizes miners to securely maintain the blockchain network by incentivizing them with rewards for their efforts, while creating new currency to keep scarcity alive.