Definition
A coinbase transaction is the special first transaction in a new block that creates new coins and assigns them to the block’s creator. It does not spend existing coins from previous transactions. Instead, it introduces newly issued coins, along with any collected transaction fees, directly into the blockchain’s ledger for that block.
In Simple Terms
A coinbase transaction is the “pay-out” transaction at the start of each new block. It is how new coins are created and given to whoever produced the block, together with the fees from other transactions included in that block.
Context and Usage
The term coinbase transaction appears most often in discussions about how new blocks are formed and how participants are rewarded for securing a blockchain. It is closely tied to the rules that define how many new coins are created per block and how those amounts change over time. It is a core component of block structure and reward distribution.