A block reward is the compensation given to miners or validators for successfully adding a new block to a blockchain network. This reward typically consists of newly minted cryptocurrency coins and any transaction fees included within the block. In proof-of-work blockchains like Bitcoin, miners compete to solve complex cryptographic puzzles, and the first to solve the puzzle adds the block to the chain and receives the block reward. In proof-of-stake systems, validators are selected based on their stake in the network to confirm transactions and receive rewards. Block rewards are crucial for incentivizing participants to secure the network, process transactions, and maintain the decentralized nature of the blockchain. Over time, in some blockchains, such as Bitcoin, the block reward decreases through mechanisms like halving, which reduces the reward periodically to control the supply of new coins.
