Bitcoin relies on a process called mining to secure its network and validate transactions.
Bitcoin mining involves solving complex mathematical problems to add transactions to the blockchain.
Every four years, the reward for mining new blocks is halved. This event is known as the halving.
Bitcoin has a finite supply of 21 million coins. What happens when this limit is reached? Mining rewards play a crucial role in incentivizing miners to secure the network.
Once 21 million bitcoins are mined, mining rewards will cease, raising concerns about the future of the network.
Miners will rely solely on transaction fees, potentially changing the dynamics of the mining industry.
With reduced financial incentives, questions arise about the security of the Bitcoin network.
The crypto community is exploring alternative consensus mechanisms to address these challenges.
The future of Bitcoin relies on the ability to adapt to changing circumstances and find innovative solutions.