After clarifying that every 10 minutes block gets the reward, Anthony clarified stating, so the next 20 minutes or the next 10 to 20 minutes block, now everyone running the software got 50 BTC, which got split among everybody running the block. And, that has continued since 2009, all the way up until today. However, one thing that happened in the Bitcoin system, was it was programmatically designed so that the 50 BTC per 10 minutes was called the Bitcoin reward, and that 50 BTC per 10 minutes gets cut in half, every four years.
So, it started out at 50 Bitcoin, every 10 minutes for 50 BTC was distributed to one who was running the network. After 4 years the rewards got cut to 25 Bitcoin. Then in 4 years down the road, 25 BTC was given to every single miner, for four years it happened and then it got cut to 12.5, and so every 10 minutes block for another 4 years 12.5.
In May of 2020, it just got cut from 12.5 to 6.25 Bitcoin. And the 6.25 BTC is distributed to miners every 10 minutes. That is their financial incentive to run the BTC software and process the Bitcoin Transactions.
Bitcoin System Has Millions of Nodes
The beauty is that you can actually find truth one of two ways. You can either roll out a centralized third party, they are in charge, they have the authority, they have all the power, and they tell all of the participants in the market about what is true and what is not.
If the bank says that you did something, then you did it, and if the banks says you didn’t do it then you didn’t do it. You have no way to tell the bank anything. Right, if all of a sudden you went to the ATM tomorrow, and the bank said you don’t have 5000 dollars in your account you only have a 1000; how would you prove that you had 5000 dollars. It is a centralized party, they have control and that is where the risk is.
Sydney Ifergan, the crypto expert tweeted: “The risk involved in Centralized system versus decentralized system amazingly clarified with reference by Bitcoin Network by Anthony. I am already his fan.”
So, one way to get to the “truth” is to have a central party tell the people what the truth is. The other way to find the truth is to have consensus among 51% or more of a very decentralized distributed network. And, that is what the Bitcoin system does. The Bitcoin system has millions of nodes, all around the world, completely geographically distributed. And, they all work together to find the truth, right to process the transactions and determine the truth. And, that is the beauty of the Bitcoin system is that it is fully decentralized, fully distributed, and it does not rely on any centralized third party.
Credit: Source link