Bitcoin operates on a decentralized network known as a distributed public ledger, where every transaction is recorded in blocks connected in a chain, forming the blockchain.

The process of adding new blocks to the blockchain, called mining, involves solving complex math problems. Miners who successfully complete this process are rewarded with new bitcoins.

However, the reward for mining decreases over time as part of Bitcoin's design to limit supply. This reduction, known as halving, occurs approximately every four years or after 210,000 blocks are added to the network.

Since Bitcoin's inception, three halving events have taken place, significantly reducing the mining reward from 50 bitcoins to 25, 12.5, and 6.25 bitcoins, respectively.

The next anticipated halving event is projected to occur around April 2024, further reducing the mining reward to 3.125 bitcoins per block. This ongoing process helps regulate the supply of Bitcoin, making it a deflationary digital asset with a finite total supply.