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What is Coinbase Transaction (Generation Transaction)?

Crypto Terms Glossary: What is Coinbase Transaction (Generation Transaction)?

A generation transaction, or a coinbase transaction as it is commonly known, is the first transaction data contained in a block on the Bitcoin blockchain. The generation transaction is responsible for clearly delineating the recipient(s) of a particular block's block reward. As opposed to traditional transactions which contain input and output data, generation transactions mint new bitcoin (BTC) from the protocol itself and therefore do not require input data.

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