What is a Coinbase Transaction? Coinbase transaction is the first Transaction in every Block and it can only be created by the miner. Miner creates a Coinbase transaction to collect their block reward when they successfully mine a block and this is how new Bitcoins are created.

Miners also include fees in Coinbase transaction that they have collected from the transactions they have included in a block. For example, in this block, Miner has received 500 Bitcoins as a mining reward and 36 bitcoins collected in fees so the total sum is 536 Bitcoins. In my Blockchain , I am rewarding Miner will 500 Bitcoins for successfully creating a Block but in real Bitcoin current mining reward is 6.25 Bitcoins. Output to 14UwWGHekdseWyQiHNUukPzCxD36R7Bh9A is called UTXO.

There is one important feature of a coinbase transaction is that bitcoins involved in the transaction cannot be spent until they have received at least 100 block confirmations in the blockchain.

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