How Does the Block Reward Incentivize Miners to Act Honestly? ⎊ Path

How Does the Block Reward Incentivize Miners to Act Honestly?

The block reward, which includes the block subsidy and transaction fees, is a substantial financial incentive. Miners are incentivized to follow the protocol rules (act honestly) because doing so maximizes their chance of receiving this reward.

If a miner attempts to cheat, their block will be rejected by the rest of the network, and they will lose the reward and the energy spent, making dishonest behavior economically irrational.

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Glossar

Miners

Validation ⎊ Miners, within the cryptocurrency ecosystem, represent network participants who compete to bundle pending transactions into blocks, subsequently adding these blocks to the blockchain through computationally intensive processes.