Double spending is a concern for many cryptocurrency developers. It refers to an individual who spends the balance of their virtual currencies more than once. Indeed, when the risk that the same units can be spent twice is too great, the confidence we have in cryptocurrency can be undermined. Focus on the essentials to know on the subject.
The question of double spending of cryptocurrencies
The question of double expense is one of the top concerns for developers working with cryptocurrencies. Normally, through a confirmation process in the blockchain, transactions that involve virtual currency are verified, recorded, and then protected. But double spending is a problem in the absence of blockchain.
Small point on the double expenditure
Double-spending is an IT problem closely related to virtual currencies that risk losing value. When a unit is spent in a transaction using cryptocurrency, caution is in order. Indeed, the operation can be duplicated by a malicious individual at any time. To avoid this phenomenon known as double spending, cryptocurrencies use a blockchain that combines cryptographic algorithms with a public ledger. We invite you to visit on the BlockInfos website for information and for understand cryptocurrency and blockchain.
Topo on blockchain and cryptocurrency
The blockchain is a public register in which are added transactions that involve cryptographic currencies in order to make them irreversible. Each block is a data file in which the operations are recorded. The concern of double spending has been resolved since bitcoin and the blockchain. This digital currency was the first to solve this problem by creating a confirmation system, but also by maintaining a universal and public account book. Since the creation of this cryptocurrency, transactions have been time-stamped. Users can view some details and the registry updates also include those for bitcoin wallets.
Protect cryptocurrencies from double spending
Blockchain technology provides a solution to the problem of double spending by using two mechanisms to prevent fraudulent manipulation. This is the validation and recording of transactions.
How does blockchain protect cryptocurrency?
Let us take the example of bitcoin to illustrate our point. The blockchain protects the cryptocurrency by first validating and then recording all transactions. In the case of this virtual currency, it is an auditable and verifiable open ledger. Then comes a verification of the authenticity of each operation via the application of the “proof of work” (PoW).
Registration, cryptography and confirmation of transaction data
The records added to the blockchain keep an ascending and consecutive order. Each new block is linked to the previous one using cryptographic techniques to guarantee the inalterability of data and the network. The transactions carried out are thus confirmed and the more the number of confirmations increases, the duplication or falsification will be difficult, if not practically impossible. The more nodes come together and the more the network grows, the more robust it becomes and abusive mining becomes more complicated.