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How will Bitcoin Cash be secured after the block subsidy runs out?


Bitcoin Cash is secured by miners, who get paid a block reward for every block of transactions confirmed in the blockchain. The block reward is made up of a block subsidy of brand-new coins and all the transaction fees in that block. The block subsidy started out as 50 coins per block. Approximately every four years, this subsidy gets cut in half. Eventually, in more than a century from now, the block subsidy will run out entirely.

The system is designed to transition the block reward from being primarily made up of the block subsidy to primarily being made up of transaction fees before the block subsidy runs out. The initial block subsidy served to bootstrap network security but was never intended as a permanent feature. With Bitcoin Cash scaling up with usage, users only have to pay a very small fee to make transactions. The cumulative effect of millions of users paying these fees is expected to provide substantial rewards for miners. As a result, the income generated from transaction fees is anticipated to surpass the diminishing block subsidy, ensuring the security of the network even after the block reward becomes zero.

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