A Bug Bounty is a program that incentivizes individuals, typically security researchers and ethical hackers, to identify and report vulnerabilities in a company's software, hardware, or systems. Organizations offer financial rewards, public recognition, or other benefits in exchange for the discovery of bugs that could pose a security risk.

Purpose:
The primary aim of bug bounty programs is to enhance the security of digital products by uncovering vulnerabilities before malicious actors exploit them. They supplement traditional security practices such as audits and penetration testing by leveraging a diverse group of external testers.

How It Works:
Scope Definition: Organizations outline what systems, applications, and types of bugs are in scope.
Program Launch: Companies host the program on their own platform or via third-party platforms like HackerOne or Bugcrowd.
Participation: Researchers identify vulnerabilities and submit detailed reports through the designated channel.
Evaluation: The company validates the submission and determines the severity of the vulnerability.
Reward Distribution: Compensation is provided based on the bug's criticality and impact.
Benefits:
Improved Security: Early identification and resolution of potential threats.
Cost-Effective: Paying per vulnerability is often cheaper than hiring full-time security teams.
Community Engagement: Builds trust by involving the broader security community in proactive defense.
Common Examples:
Google Vulnerability Reward Program: Pays researchers for bugs found in Android, Chrome, and other Google services.
Facebook Bug Bounty: Focuses on improving the security of Facebook's platform and related applications.
Microsoft Bug Bounty: Targets security flaws in Windows, Azure, and other Microsoft products.
Challenges:
Duplicate Reports: Multiple researchers may submit the same bug.
False Positives: Non-actionable submissions can consume time and resources.
Management Complexity: Organizing and validating numerous reports can overwhelm smaller teams.
Bug bounty programs are now a cornerstone of modern cybersecurity, fostering collaboration between organizations and the global security community.