How Do We Know that Data on the Nodes are Authentic?

When data is added to the Bitcoin network, the nodes validate the data; the process takes about 10 minutes. Upon validation, the block of data is placed onto the blockchain. Once there, it is permanent and always available for all to see.

To encourage people to validate the data, validators receive a block reward. It’s payment for the work they’ve done. This is why the Bitcoin blockchain is called a Proof of Work protocol. (A protocol is a set of rules.)

When Satoshi launched the Bitcoin network in 2009, validators received 50 bitcoins for every block of data they validated. About every four years, the block reward is cut in half; halvings occurred in 2012, 2016, 2020 and 2024 – reducing the block rewards from 50 to 25, then to 12.5, 6.25 and currently 3.125 bitcoins. On the next halving in 2028, the block reward will become 1.563 bitcoins. The reward will continue to be halved every four years until the last bitcoins are mined in 2140. Thus, 21 million bitcoins will be produced; 99% of them have been created so far.