What is Miner Fee

The transaction fee which the Bitcoin miner gets is the miner fee. When any new Bitcoin block gets created through successful hashing, data for all transactions are included in this block and all the fees are collected by the miner who creates the block. The sender is supposed to pay the entire network fee. Transaction fees are not compulsory on part of someone who is making the transaction. So the person making transactions can either include or not include any fees at all. Those who are mining new Bitcoins need not necessarily accept transactions or include these in the block getting created. So, the transaction fee basically works like an incentive for the transactor to ensure that the transaction gets included in the block.

The main idea behind collecting miner fees is to let people making new blocks to get more Bitcoins; so it will serve as incentive for creating new blocks. Every time the miner unlocks a block through mining, the transactions in that block will get processed, in return for this hard work, the miner receives a 12.5 Bitcoin for every Bitcoin block. The miners can also retain transaction fees which the Bitcoin holders will pay for every such transaction. Earlier, miners would get limited transaction fees but the numbers have grown dramatically now.

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