Cryptocurrency Incentives In most early cryptocurrencies like Bitcoin, miners secure the network by verifying transactions and adding new blocks to the blockchain. The miners are rewarded with newly created bitcoins, which provides them the incentive to ensure they keep working. It was an elegant solution to the problem of securing a decentralized network. But directing all financial incentives to the miners leaves nothing to incentivize the community, the group that is most needed to grow adoption of the cryptocurrency.
Mt. Gox was one of the earliest and largest Bitcoin exchanges, processing hundreds of millions of dollars worth of Bitcoin trades every day - right up until it closed back in 2014. Mt Gox announced that they had been hacked, and that 850,000 bitcoins had been stolen. But because all Bitcoin transactions are recorded in the public blockchain, researchers were able to track all of the coins as they moved around the network, and eventually even to figure out who was likely behind the hack.