Double Spending of Bitcoin
If you have been following news from the cryptocurrency world in the past two weeks, you’d have heard the term double spending. If you take a deeper look, you’d also know that people discussed the alleged double-spend of Bitcoin.
However, double spending isn’t one of the mainstream terms about bitcoin or the crypto tokens in general.
So, don’t doubt your Bitcoin knowledge if you don’t understand what Bitcoin double spending means. To clear the confusion once and for all, we have prepared a handy guide on what double spending of Bitcoin is, how it happens, and how the cryptocurrency ecosystem prevents potential cases of double spending.
What is Double Spending?
Double-spending is an issue that occurs in digital finance industries when a digital currency is spent twice. It means a digital currency token could be used to carry out two different transactions. The problem is more common in digital finance because tech-savvy individuals can quickly reproduce copies of a digital currency.
It does not happen much with physical currencies because reproducing the printed currencies isn’t an easy affair. Instead, the process requires a lot of time and effort from the malicious actor. More importantly, since physical currencies are centralized, authorities do a better job of stopping those who attempt double-spending a currency.
Today, we use the term double-spending to refer to the instances (or the possibility) in the cryptocurrency industry. Therefore, the next time you hear the term, it will probably be about Bitcoin.
What Is Double Spending of Bitcoin?
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