Blog

Title: Understanding of Coinbase transaction outputs and the Ethereum Blockchain: Why rewards are less than expected

Introduction

The Ethereum blockchain is a decentralized open source platform that enables the creation of intelligent contracts and decentralized applications (DAPPS). One of the main features of the Ethereum network is the concept of Coinbase transactions with which users can send and receive value in the chain without manually transmitted. However, one of the most interesting aspects of Ethereum blockchain is how the transaction outputs are calculated.

Why Coinbase transaction outputs are larger than reward

If the sum of the outputs of the Coinbase transaction less than or equal to the current reward (currently 25 BTC) at first glance this may seem contrary. However, let us dive deeper into the argument.

The concept of Coinbase transaction outputs

On the Ethereum blockchain, each block contains several transactions that are recognized as coating copies or transactions. Each transaction output represents a certain value that is sent or received in the chain. The total value of all transaction outputs in one block must be less or equally 1 BTC (a thousand USD).

The reason that the outputs of Coinbase are slightly higher

One reason why Coinbase transaction outputs are slightly higher than the reward is the way the Ethereum network deals with transactions and rewards. When a user sends cryptocurrency to another user in the chain, he will receive a certain amount of coinbase transactions that represent the value sent.

For example, if a user sends 10 BTC to a receiver, he also receives 10 coin base transactions (one for each BTC). These coinbase transactions are used to calculate the reward for the miner, who checked the block and added the blockchain. However, the Coinbase transaction outputs do not directly meet the premiums received by the user.

Why the reward does not meet any coin outputs

The reason why the reward does not correspond to the coin base outputs is a combination of factors:

• Transaction complexity : The Ethereum network has complex transaction salgorithms that determine how much value the transactions of each block output.

• Gas ​​prices : Gas prices that are required to carry out transactions on the blockchain can vary depending on the market conditions and other factors.

• Block reward assignment : The block reward is assigned on the basis of a formula that takes into account different parameters, including the complexity of the transaction, gas prices and network overload.

Diploma

In summary, the Coinbase transaction outputs are slightly higher than the reward to expose the complexity of the Ethereum network and ensure that transactions can be processed efficiently. This may seem contrary at first, but it is a fundamental aspect of the architecture of Ethereum Blockchain.

If the Ethereum ecosystem continues to grow and becomes ripe, it becomes increasingly important for developers, miners and users, more and more to understand how the expenses of the Coinbase transaction are becoming increasingly important.

Jupiter Chainlink Link