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 is a decentralized digital currency that is based on cryptography. As such, it can operate without the... Read More, for example, miners are incentivized to validate transactions and add them to the blockchainA blockchain is a distributed database that is shared among the nodes of a computer network. Read More. This incentive is a reward (in Bitcointesting out a lowercase version of this. Read More) for each block 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 blocksGroups of data within a blockchain. On cryptocurrency blockchains, blocks are made up of transaction records as users buy or sell... Read More, or roughly every four years, creating a strong incentive for miners to continue participation in the system as the rewards decrease over time.
