Mining rewards are incentives that participants receive for helping to secure a blockchain through the verification and recording of transactions. In traditional banking, the central authority manages transactions and verifies them.
Blockchain networks are based on a network of decentralized miners, or validators. They use computational power to keep the ledger up-to-date or staked coins. A miner receives a reward when they successfully add a block of transactions to the blockchain.
The reward is usually paid in native cryptocurrency for the network and, in some cases, transaction fees.
The miners are compensated for their time, effort, and resources. To manage supply and prevent inflation, new coins are introduced in a controlled way.
There would be no incentive for anyone to maintain the integrity of blockchains without such rewards.
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