The next Bitcoin halving is on the horizon, drawing closer with each passing block and anticipated to take place anywhere between April 18 to April 22, 2024, at the milestone of block 840,000. Following this event, the reward for mining a block will halve from 6.25 bitcoins to 3.125 bitcoins. The following is a thorough exploration of what you need to understand regarding the fourth Bitcoin halving.
Navigating Through Bitcoin’s Imminent Reward Halving
As of now, fewer than 2,900 blocks remain until the forthcoming Bitcoin halving event. To grasp the concept of halving, it’s beneficial to first understand how new bitcoins come into existence, primarily through the process of bitcoin mining.
This involves entities, known as miners, validating blocks packed with transactions awaiting confirmation. In their pursuit to secure bitcoin rewards, miners engage in a computational contest, applying their processing power in a method referred to as ‘Proof-of-Work’ (PoW).
Upon successfully discovering a block and validating the held transfers, miners are rewarded with 6.25 newly created bitcoins, in addition to collecting transaction fees from each transfer processed. While the discovery of blocks occurs on average every ten minutes, this duration can vary.
