Recipe for Mining: Step 5

Assuming that our block made its way into the longest chain, we profit! We receive both the block reward, represented by the coinbase transactions, and transaction fees.

All the transactions within that block are added to the canon transaction history.

A situation in which our block is not in the longest chain is where our block is competing with another block that was submitted to the network at the same time.

In which case, miners will likely choose randomly between the two, meaning that it’s once again luck.

If your block is orphaned, or in a fork that’s not the longest chain, then you get no profit.

We won’t actually ever be 100% certain that our block is in the longest chain.

We just assume that the probability of a fork happening gets lower over time.

We’ll talk about that more in the game theory lecture.

Text: Recipe for Mining