GENESIS BLOCK, BLOCK SIZE, BLOCK HEIGHT, BLOCK TIME, BLOCK REWARD, BLOCK TIMESTAMP EXPLAINED


Welcome to Crypto Jargon. In this episode, we look at the following terms
All in relation to blockchain, of course
This episode is sponsored by Ledger: the maker of the best hardware wallets on the market
to find out more about it,
Check out the description of the video where you will find the link and my tutorials
on the Ledger Nano S and Ledger Nano X devices.
So let’s start with what is a Block?
It is in fact just a file with digital data
Mostly, that would be the most recent transactions of a cryptocurrency
But it could also be other digital data depending on the blockchain.
As new blocks are created and processed,
they’re interlinked with the previous blocks in what is known as a blockchain.
Block size as you can easily guess from the name,
This is the capacity of each of these blocks (aka files)
and that will vary from cryptocurrency to cryptocurrency.
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
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.
Genesis Block is the first block. It has a height of 0,
In other words, we can say that 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 instance, with Bitcoin that is every 10 minutes,
For Litecoin it is every 2.5 minutes,
while for Etherium it varies, but it’s usually under 15 seconds
“Block Timestamp” is different than “Block time”
It is the records of when a block was created and transactions were processed.
Every transaction also has a timestamp. This is the the moment the transaction was processed
so this is the difference between “Block time”, which is the time it takes for a block to be created,
and “Block timestamp”,
which is the actual time It was created.
This is basically the “payoff”, the reward given to a miner who has successfully calculated
the hash in a data block during the mining process.
The mining is explained in a different episode of this series
So make sure you check that out.
Block rewards can be a mixture of coins and transaction fees
depending on the policy used by the cryptocurrency in question.
With Bitcoin for instance,
This reward is halved every 4 years, and it started as being 50 coins per block in 2008,
then in 2012, It was halved to 25 coins
in 2016, it became 12 and a half coins
and in 2020, It will be halved again
to 6.25 coins per block.
This is programmed in the Bitcoin code and it is intended in order to distribute
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.
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and thanks for watching
I’m gonna see you in the next episode.
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