What are tokens, block rewards, transaction fees and similar used for?

What are tokens, block rewards, transaction fees and similar used for? (*) to buy stuff on the Deep Web (*) to incentivize desirable behavior (*) to encourage bad behavior (*) to bribe participants

This is a companion discussion topic for the original entry at https://english.best/questions/22928,what-are-tokens-block-rewards-transaction-fees-and-similar-used-for/

I’m sure @Sumejja knows the answer to this question :wink:


to incentivize desirable behavour


That’s correct, Marc! Thank you for the tag, Torsten!

For anyone wondering about this - if you participate in the network (ie. by mining or staking or whatever other consensus algorithm it runs on), and you play by the rules, you have the chance of getting tokens and/or block rewards. Transaction fees are also given to the miner who includes the block containing those transactions into the blockchain. In short, working for the common good of the network gives you the chance of winning something.

As for the other answers: if your behavior is bad, you simply won’t get any rewards. So they’re not used for that, right? Also, you can’t really bribe other participants - at least not very successfully, because you’d need quite a bit of money, and it is presumed that the reward obtained that way would not pay off because in the end, you’re at a loss. Buying stuff on the Deep Web isn’t incorrect as such, but that’s not the primary purpose of these rewards. Also, buying stuff on the Deep Web is illegal, folks!


Hi again @Sumejja, thank you so much for sharing this information and helping us learn everything about we want to know about blockchain.

A few days ago we launched our first version of a logged-in UI. Facebook sign-up is not working yet and a lot of things need to be improved but already a few admin staff of various colleges and universities from around have signed up to see what is ‘under the hood’. We could provide a unique combination of interactive exercises and personal online tuition where you, the creator of the materials is also available as an online tutor to give further instruction and answer specific questions your students have. What do you think of this idea?


Hi @Torsten! That sounds pretty good to me - I’m also available here but may not see every question, so a system where I as the creator am already tagged (or otherwise notified) of questions would definitely improve response time.