# Step 2: Transaction Collection

Once transactions are broadcasted and validated, each node begins the **block creation process**.&#x20;

**Collecting Transactions**: Nodes continuously gather valid transactions into a block template. The longer the time since the last block was discovered, the larger the block becomes.

**Incentives for Collection**: Nodes are motivated to collect transactions due to the **coinbase reward**, which consists of a block subsidy and transaction fees. **As the subsidy decreases**, the need to manage a larger volume of transactions becomes critical for profitability.

#### Block Template Management

* Nodes must be capable of efficiently collecting and managing transactions in real-time to remain competitive.
* The block template is updated continuously to include the most recent transactions, maximizing potential revenue.


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