Coinbase Transaction

Coinbase Transaction is a special transaction created when a new block is formed to record a payment to the block creator. Despite its name, it is not related to a regular transfer of funds between two users.

Features of a Coinbase Transaction

A Coinbase Transaction is created by the participant forming the block rather than being submitted by a network user. It may contain an amount corresponding to the block subsidy, as well as the portion of transaction fees permitted by the protocol.

This transaction is typically the first transaction in a block. Its structure and formation rules depend on the specific blockchain.

Relationship with the Reward

The primary function of a Coinbase Transaction is to record the block reward. If a block contains an invalid amount or violates the protocol rules, it may be rejected by the network.

Therefore, the maximum payment amount is not arbitrary. A miner cannot simply specify any desired amount: the permitted values are determined by the blockchain rules.

Difference from a Regular Transaction

Characteristic	Coinbase Transaction	Regular Transaction
Creator	Participant forming the block	Network user
Purpose	Recording the reward and related payments	Transfer of assets
Position in the block	Typically the first transaction	Any valid position

The Coinbase Transaction is an important part of the economic incentive mechanism of mining, because it is through this transaction that the protocol records the payment to the participant who created a new block.