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The block reward is the incentive provided to miners or validators for successfully adding a new block to the blockchain through the process of mining or validating transactions. In proof-of-work (PoW) blockchain networks like Bitcoin, block rewards consist of newly minted cryptocurrency coins, such as Bitcoin (BTC), along with transaction fees collected from transactions included in the block.
The block reward serves as a mechanism to incentivize network participants to contribute their computational power and resources to secure the blockchain, validate transactions, and maintain the integrity of the network. As a form of compensation for their efforts, miners receive block rewards for their role in creating new blocks and extending the blockchain. Block rewards are an essential component of blockchain consensus mechanisms, ensuring the sustainability and security.
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Plena Finance acknowledges the concept of block rewards within blockchain networks, where miners or validators receive incentives in the form of cryptocurrency for successfully adding a new block to the blockchain. These rewards play a crucial role in maintaining network security and incentivizing participants to contribute computing power or stake to secure the blockchain. While Plena Finance focuses on decentralized finance (DeFi) solutions rather than blockchain consensus mechanisms, it recognizes the importance of block rewards in supporting the overall integrity and functionality of blockchain networks.
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