Glossary · Mining

Coinbase transaction

By the CloudMineCrypto teamUpdated Also called generation transaction

Definition

The coinbase transaction is the first transaction in every Bitcoin block. It’s the one the miner writes to pay itself the block reward: the new bitcoin from the block subsidy plus all the fees from the other transactions in the block.

Part of the Bitcoin mining glossary, 88 terms in plain English.

Inside one block

  1. #0Coinbase transaction

    always first

    Input

    No earlier coins. A free-form field holds the block height, the extra nonce and often the pool’s name.

    Output

    The miner’s address gets up to 3.125 BTC new bitcoin + about 0.020 BTC in fees.

  2. #1Ordinary paymentfee 0.00004210 ↑
  3. #2Ordinary paymentfee 0.00001875 ↑
  4. #3Ordinary paymentfee 0.00012030 ↑
  5. …and a few thousand more
Every fee flows up into the coinbase output. Fee figure is a live estimate of today’s average, updated hourly. The example fees on the payments are made up.

What makes it different from other transactions?

A normal transaction spends coins that already exist. The coinbase has a single input that points to nothing, because it creates new coins. Where a normal input would carry a signature, it has a free-form field of up to 100 bytes.

Since 2013 that field has to start with the block’s height. Miners put the extra nonce there, and pools often add their name. The very first one, in the genesis block, holds a newspaper headline: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”.

How much can it pay?

At most the subsidy plus the block’s fees. Today the subsidy is 3.125 BTC, and fees add about 0.020 BTC to an average block (live estimate, updated hourly). Claim more and every node rejects the block. Claim less and the difference is gone for good; some blocks have done exactly that by mistake.

The outputs can go to any addresses. A pool usually pays one address of its own and then pays members separately. Since SegWit, the coinbase also carries a small output that commits to the block’s witness data.

Why can’t it be spent right away?

Coinbase coins have to wait until 100 more blocks are built on top, about 16 to 17 hours. A block can still lose a race and go stale, and its reward would vanish with it. The wait stops anyone spending coins that might disappear. The exchange called Coinbase is a separate thing that shares the name.

Sources

  1. Coinbase · Bitcoin Wiki
  2. Block chain reference: headers, Merkle trees, target · Bitcoin developer documentation
  3. Block chain guide · Bitcoin developer documentation

Live figures on this page come from the CloudMineCrypto API and public chain data, refreshed regularly, and are labelled where they appear. Educational only, not financial advice.

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