Coinbase Transaction

Coinbase refers to a leading U.S.-based digital asset exchange, the coinbase transaction that creates new digital assets in a blockchain block, and the block reward that incentivizes miners with new assets and transaction fees.

What is Coinbase Transaction?

A coinbase transaction is the first transaction in a blockchain block, unique for creating new digital assets without prior inputs. It rewards miners with a block subsidy (newly minted coins) and aggregated transaction fees. In Bitcoin, as of 2025, the subsidy is 3.125 BTC per block (post-April 2024 halving).

Block reward, embedded in the coinbase transaction, incentivizes miners in proof-of-work blockchains like Bitcoin by combining the block subsidy and transaction fees. Fees, which spiked to over 100 BTC during 2021 peaks, are increasingly vital as subsidies decline, supporting network security and influencing scalability solutions like layer-2 networks.

Coinbase Inc., founded in 2012 by Brian Armstrong, is a prominent digital asset exchange and custody service, serving over 100 million verified users globally as of 2025. It supports trading over 250 digital assets, including Bitcoin and Ethereum, offering features like staking, institutional custody, and advanced trading tools. Coinbase is publicly listed on NASDAQ (COIN) since April 2021. Base Chain, a Ethereum Layer 2, is also also supported by Coinbase.