Every block has a special transaction at index 0 called the Coinbase Transaction.
🪙 Coinbase Transaction Characteristics:
- Has no inputs (does not consume past UTXOs).
- Creates brand new Bitcoins (block subsidy).
- Collects transaction fees from all other transactions included in the block.
Miners prioritize transactions with higher fee rates (satoshis per byte) when constructing blocks from the mempool.
🧠 Today's Key Takeaway
- Coinbase transactions create new Bitcoins and collect transaction fees.
- Fees incentivize miners to include transactions into scarce block space.
