Skip to content
Satoshi Gazette
Glossary

Coinbase transaction

The first transaction in every block, with no real input, through which the miner claims the subsidy and the block's fees. The exchange called Coinbase took its name from it.

Mining

Definition dated

also generation transaction

Every block begins with a coinbase transaction. It spends no earlier output; it creates new bitcoin up to the block subsidy plus the fees of the block's other transactions, paid to whatever outputs the miner chose. A coinbase that pays out more than that makes the block invalid.

Its input field is free space the miner fills in. Since BIP 34 it must begin with the block's height; pools usually add a tag naming themselves, which, with payout addresses, is where explorers' pool labels come from. Since SegWit, a block with witness data also commits to it in a coinbase output.

Because its outputs are the miner's whole reward, fee revenue can be read from it: coinbase outputs minus the subsidy for that height, which counts only what the miner actually claimed.

Common misreadings3

  • People say

    The coinbase tag proves who mined the block

    Precisely

    The tag is free text any miner can write, and payout addresses can be shared or reused. Pool labels built from them are a heuristic.

  • People say

    A miner can spend the reward at once

    Precisely

    Consensus makes a coinbase output wait 100 more blocks before it can be spent (COINBASE_MATURITY).

  • People say

    Coinbase means the exchange

    Precisely

    The coinbase transaction has been part of the protocol since the first block in 2009. The company took its name from it and has no part in it.