Bug Bounty programs allow the developers to discover and resolve bugs before the general public is aware of them, preventing incidents of widespread abuse. Bug bounty programs have been implemented by a large number of organizations.
Hunter and Ready initiated the first known bug bounty program in 1983 for their Versatile Real-Time Executive operating system. Anyone who found and reported a bug would receive a Volkswagen Beetle (a.k.a. Bug) in return.
A little over a decade later in 1995, Jarrett Ridlinghafer, a technical support engineer at Netscape Communications Corporation coined the phrase 'Bug Bounty'.
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