Fig 7 Privacy Satoshi White Paper

The network rewards the first person to create a block with a new coin.

This encourages people to help run the network and also spreads coins around since there is no central organization issuing them.

This reward is like gold miners using resources to add gold to circulation, but in this case, it’s CPU time and electricity being used.

Transaction fees can also fund this incentive.

Once a set amount of coins are in circulation, the network can switch to just using transaction fees.

This incentive can encourage people to be honest because if someone tries to cheat the system, they would have to choose between stealing money or generating new coins.

It’s more profitable to play by the rules and get more new coins than to undermine the system and the validity of their own wealth.

By CBDC