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We refer to the basic unit of mining work in. Bitcoin as a scratch-off puzzle (SOP). In Bitcoin today, nodes mine coins by solving SOPs that involve finding preimages under a hash function. Correctly solving an SOP constitutes a proof of work [14], i.e., computational investment. At the time of writing, mining a Bitcoin block ( 

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Dec 6, 2013 In the early days of Bitcoin transaction fees were mostly set to zero, but as Bitcoin has gained in popularity, transaction fees have gradually risen, and are now a substantial additional incentive on top of the 25 bitcoin reward for mining a block. You can think of proof-of-work as a competition to approve