Incentivization by design is an approach to designing systems, programs, or policies that incorporates incentives into the structure of the system to encourage desired behaviors. With BitcoinBitcoin is a cryptocurrency. It operates without the need for a central authority like a central bank or a company,... Read More, for example, miners are incentivized to validate transactions and add them to the blockchainAs a distributed ledger technology (DLT), a blockchain is a digital ledger that can create an immutable record of transactions.... Read More. This incentive is a reward (in BitcoinOne bitcoin is a unit of the virtual currency called Bitcoin. BTC is the ticker symbol for Bitcoin, and refers... Read More) for each blockA block is a specific type of construct in a blockchain that stores transactional information blocks typically contain transaction information... Read More mined. The rewardA reward is an incentive given to a miner who successfully hashes a transaction block. The reward for completing a... Read More halves every 210,000 blocks, or roughly every four years, creating a strong incentive for miners to continue participation in the system as the rewards decrease over time.
