Coinbase Transaction
Definition
A coinbase transaction is the first transaction in every block, creating new coins as the block reward for the miner. It has no inputs (coins come from nowhere) and outputs to the miner's address. This is how new cryptocurrency enters circulation.
Technical Explanation
Unlike regular transactions spending existing UTXOs, coinbase transactions create value per protocol rules. They include the block subsidy (new coins) plus all transaction fees from the block. Miners can include arbitrary data in the coinbase's input field—Bitcoin's genesis block famously contains a newspaper headline.
Coinbase outputs typically have a maturity period—they cannot be spent for a certain number of blocks (100 in Bitcoin). This protects against spending rewards from blocks that might become orphaned due to reorganizations.
SynX Relevance
SynX block rewards follow the coinbase model: new SYNX enters circulation through mining according to the emission schedule. Miners receive coinbase outputs that mature after sufficient confirmations, securing the network while distributing new supply.
Frequently Asked Questions
- Where do new coins come from?
- Coinbase transactions create them per protocol rules—controlled by the emission schedule.
- Why can't I spend mining rewards immediately?
- Maturity period protects against spending rewards from potentially orphaned blocks.
- Does coinbase relate to the Coinbase exchange?
- The exchange took its name from this concept, but they're technically unrelated.
Fair distribution through mining. Mine SynX