Payment-As-Mining

Definition ∞ Payment-as-mining is a system where making payments contributes to a cryptocurrency mining process. This innovative economic model integrates the act of transacting with the mechanism of cryptocurrency mining, allowing users to earn mining rewards by simply making or receiving payments within a specific network. Instead of dedicated computational power, users’ transactional activity itself contributes to the network’s consensus or block production, thereby distributing newly minted tokens. This approach aims to incentivize network usage and create a more equitable distribution of mining rewards.
Context ∞ Payment-as-mining models are an emerging area of interest in the blockchain space, seeking to redefine how network participation and token distribution occur. A key discussion involves the economic viability and security implications of such models, particularly concerning their resistance to sybil attacks and their long-term sustainability. Future developments will likely explore variations of this model, aiming to optimize incentives for network activity and ensure robust security without relying on traditional proof-of-work mechanisms.