Coinbase Transactions - what is it?

Coinbase Transactions are the first transaction of any block in the blockchain.

The development of most cryptocurrency networks is based on the formation of new blocks, which, in turn, form a blockchain. Due to this, the architecture of the entire ecosystem is maintained.

In every blockchain, when each new block is created, there is a list of confirmed transactions. They are initiated by users. However, in any block there is a first transaction, which is called Coinbase. It is performed when a reward is calculated to the miner for finding a new block. The transaction amount varies depending on the halving cycle.

Coinbase transaction has its own unique properties. Since miners have direct influence on the contents of the transaction information file, algorithms are used to avoid abuse of capabilities. Transaction rewards can only be used after 100 confirmations. This is how the validity of the block and its compliance with all criteria are confirmed.