Bitcoin White Paper: 6. Incentive

Written by BitcoinWhitePaper | Published 2019/06/27
Tech Story Tags: bitcoin-white-paper | read-bitcoin-white-paper | bitcoin-incentives | bitcoin-white-paper-incentives | incentizing-bitcoin | bitcoin | btc-white-paper | btc-incentives

TLDR By convention, the first transaction in a block is a special transaction that starts a new coin owned by the creator of the block. This adds an incentive for nodes to support the network, since there is no central authority to issue them. The steady addition of a constant of amount of new coins is analogous to gold miners expending resources to add gold to circulation. Once a predetermined number of coins have entered circulation, the incentive can transition entirely to transaction fees and be completely inflation free. If a greedy attacker is able to assemble more CPU power than all the honest nodes, he would have to choose between using it to defraud people by stealing back his payments, or using itvia the TL;DR App

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Written by BitcoinWhitePaper | A Peer-to-Peer Electronic Cash System
Published by HackerNoon on 2019/06/27