From Gemini: Bitcoin's mechanism, primarily using proof-of-work, solves the free-rider problem by aligning individual self-interest with the maintenance of the public good (the secure, decentralized transaction ledger) through a built-in incentive system. Explicit Cost for Benefit: Unlike a traditional public good where one can benefit without contributing, participation in the Bitcoin network requires an explicit contribution of resources (computational power for mining) to gain any benefit. Monetary Incentives: Miners expend significant computing power to verify transactions and secure the network. In return, they are rewarded with a block reward (newly created bitcoins) and transaction fees. This ensures that only those who contribute to the network's security are compensated. Excludability of Rewards: The block reward and transaction fees are not non-excludable public goods; they are captured by the specific miner who successfully solves the computational puzzle first. Non-contributors (non-miners) cannot access these rewards. System Integrity: The entire system is designed such that acting honestly (contributing computational power to verify legitimate transactions) is the most profitable strategy for a miner. Attempting to free ride or act maliciously would require an enormous amount of computational power with a high risk of losing their investment (e.g., in a "forking" attack). In essence, Bitcoin internalizes the cost of providing the public good (a secure, transparent ledger) and structures its incentives so that participants are directly rewarded for their contributions, bypassing the classic market failure associated with free riding.