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[c] The system is secured by the combined economic forces of the network, the timeliness of consensus (through the use of a proof-of-work system), and the continued security of the network.
[c] The network requires a backlog of at least one block to ensure that a coherent, consistent, and secure chain of blocks is maintained.: ch.
[c] On 13 January 2014, the reward for mining block 491406 was halved from 50 bitcoins to 25.[223] This halving was anticipated by miners and developers, and was done in an effort to reduce mining rewards to a more economically viable level. This was achieved by halving the rate at which new bitcoins are generated, and requiring a computational power increase to be able to produce the same number of bitcoins.
The halving adjustment also switched from a linear adjustment of all subsequent block rewards (which was 5.0 in January 2014, 3.0 in April 2016, 2.5 in April 2020, and then 1.0 in August 2020), to a more complex function that differs by the number of blocks generated since the previous reward reduction. For example, the earlier reward reduction resulted in halving the rewards for 12,841,906 blocks, which rewarded miners with 48 million bitcoins. The chain with all of these blocks has not been completely verified and distributed, so the halving will have no effect on block rewards until the first 11,022,146 block.
History
Development of bitcoin began in 2008 with the publication of the bitcoin paper by pseudonymous developer Satoshi Nakamoto, whose real identity is unknown. The paper described a new electronic cash system that used cryptography to control the creation of money, to verify the transfer of funds, and to secure transactions.
The first successful transaction using bitcoin's proof-of-work system was carried out in January 2009, with the transfer of 1,000,000 bitcoins from user id mastercoin1 to user id mastercoin.
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