
- Blockchain - Home
- Blockchain - Introduction
- History of Blockchain
- Blockchain - Technology
- Blockchain and Cryptography
- Blockchain Beyond Crypto
- Blockchain - Advanced Concepts
- Blockchain - Decentralization
- Blockchain - D-Apps
- Blockchain - DeFi
- Blockchain - Future Scope
- Smart Contracts in Blockchain
- Blockchain - Ricardian Contracts
- Blockchain - Oracles
- Blockchain - DAO
- Bitcoin
- Bitcoin - Invisible Gold
- How Bitcoin Works?
- Bitcoin - Network
- Bitcoin - Wallets
- Bitcoin - Innovations
- Ethereum
- Ethereum Alternate Cryptocurrency
- Ethereum Ecosystem
- Ethereum Virtual Machine
- Advanced Ethereum
- Ethereum Wallets
- Ethereum Miner Nodes
- Miscellaneous
- Blockchain - Double Spending
- Public Key Cryptography
- Blockchain - Hashing
- Bitcoin - Mining
- Blockchain - Chaining Blocks
- Blockchain - Proof of Work
- Blockchain - Network & Mining
- Blockchain - Incentives to Miners
- Blockchain - Merkle Tree
- Blockchain - Payment Verification
- Blockchain - Resolving Conflicts
- Blockchain - Privacy
- Bitcoin - Mitigating Attacks
- Blockchain - Conclusion
Blockchain - Incentives to Miners
As we saw in the chapter Bitcoin - Mining, a miner may be flooded with many transactions at any given period of time. The maximum size for a block is pre-defined in the system necessitating that only a certain number of transactions be included in the block.
The number of transactions in the block is determined by the pre-defined block size and the average length of each block. An important tip here is that the sender should not include too much information in its message so as to make it short and thereby incentivizing the miner to accept it before the other lengthy messages.
A sender generally will also add a transaction fee in terms of a certain number of bitcoins so as to incentivize the miner for early inclusion in his block.
The other consequence in building the blockchain is its mere size. Over a period of time, the entire blockchain may become too large for a node to store it on its disk. This is solved by using Merkle Tree which is described next.