Welcome to Crypto Jargon.
In this article we look at the following terms:
- BLOCK SIZE
- BLOCK HEIGHT
- BLOCK TIME
- BLOCK TIMESTAMP
- BLOCK REWARD.
So, let’s start with what is a Block.
Simply put, this is a file with digital data, predominantly the most recent transactions of a cryptocurrency. As new blocks are created and processed, they’re interlinked with the previous blocks into what is known as a blockchain.
Block Size as you can easily guess from the name, is the capacity of each of these blocks (aka files) and that will vary from one cryptocurrency to another. For instance, Bitcoin’s block size capacity for the most part of its lifespan has been 1MB which some people do not agree with and they branched off in 2017, creating Bitcoin Cash which now has blocks of 32MB size each.
Block Height refers to the number of blocks connected together in the blockchain. It is the number of blocks between itself and the genesis block. The genesis block has a height of 0… In other words, we can say it’s the block number in the blockchain sequence although the correct term is not number, but Height.
Block Time is literally the time it takes to generate a new block on a blockchain. That is different for every cryptocurrency, for Bitcoin that is every 10 minutes, for Litecoin it is 2.5 minutes, while for Ethereum it varies but it’s usually under 15 seconds.
Block Timestamp is the record of when a block was created and transactions were processed.
And Block reward is basically the “payoff” (reward) given to a miner who has successfully calculated the hash in a data block during the mining process. Block rewards can be a mixture of coins and transaction fees, depending on the policy used by the cryptocurrency in question.
With Bitcoin, that reward is halved every 4 years, it started as being 50 coins per block back in 2008, then in 2012 that was halved to 25 coins per block, in 2016 it became 12.5 and in 2020 it will be halved again, to 6.25 coins per block. This is programmed in the Bitcoin code and it’s intended to create less supply over time, thus reducing the risk of deflation in value. This is how I can tell you that the last full Bitcoin will be mined in 2032 and the last satoshi will be mined in the distant future – the year is 2140.
As you probably know I also post these definitions on my YouTube channel, here’s my episode with today’s terms:
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