Bitcoin is the most well-known and frequently used example of a mineable cryptocurrency, but it is not the only one. The Proof of Work consensus algorithm is used in Bitcoin mining (PoW). It was the first blockchain consensus method invented by Satoshi Nakamoto. It was first mentioned in the Bitcoin whitepaper in 2008. In a nutshell, PoW governs how a blockchain network establishes agreement among all distributed players in the absence of third-party intermediaries. It accomplishes this by necessitating a substantial amount of computer resources in order to disincentivize undesirable behavior.
Miners validate transactions in a PoW network, as we've seen. Miners compete to mine the next block by solving difficult cryptographic tasks with specialized mining equipment.
The first miner to find a valid solution receives the block reward.
The amount of cryptocurrency in a block reward varies depending on the blockchain. As of December 2021, Bitcoin network miners could earn 6.25 BTC in block rewards. The amount of BTC in a block reward is reduced by half every 210,000 blocks due to the halving mechanism (about every four years).