How Blockchain Mitigates The Possibilities Of Double Spending Of Bitcoin?
Cryptocurrencies are gaining an exceeding extent of popularity. Cryptocurrencies are primarily famous as investment assets, but the foundation of cryptocurrencies is as a payment method or digital currency to facilitate transactions.
Bitcoin was the first-ever cryptocurrency, and a Japanese inventor Satoshi Nakamoto invented bitcoin in 2008 and released it in 2009. After bitcoin, the cryptocurrency market started to emerge. And there were ample cryptocurrencies in a nominal range of time. However, most of these cryptocurrencies are a clone of bitcoin except a few, such as ethereum.
Due to this fact, bitcoin influences the store value of most of these cryptocurrencies. Therefore, as if the value of bitcoin falls, the value of these cryptocurrencies or altcoins correspondingly falls. Moreover, since cryptocurrencies are politically independent and no government authorities can back up bitcoin, there are chances of double-spending. Thus, undeniably there are significant advantages of decentralization, but double-spending is a limitation.
Double spending is the progression of sending one bitcoin unit to two different addresses at the same time. Bitcoin trading is one of the profitable ventures. There are websites bitcointrader2.com which can help you in getting profitable results in your bitcoin trading expedition. Double spending is illegal in every cryptocurrency, and blockchain puts the best foot forward to mitigate the possibilities of double spending in a network.
Here is an utter portion demonstrating the fact how blockchain eradicates the possibilities of double-spending. So without wasting any further ado, let's jump straight to the facts.
The concept of blockchain was present way before the concept of bitcoin, as blockchain is just a database. However, Satoshi Nakamoto implemented the concept of blockchain for the very first time. Satoshi Nakamoto invented blockchain alongside bitcoin in 2008. Blockchain underlies a distributed ledger technology which means a blockchain copy is present in every computing entity of the peer-to-peer network.
You know that bitcoin merely achieves decentralization because of blockchain, peer-to-peer network, and proof of work. So, in a nutshell, bitcoin relies on blockchain to an exceeding extent and cannot survive without blockchain.
However, blockchain has a robust solo existence. The prominent reason behind this is that blockchain is one of the utmost structured databases with enormous transparency and robustness of hold database. Blockchain offers you perks immutability, decentralization fast, settlements, and many more. Here are some frequently asked questions regarding blockchain
Blockchain is a public database that stores information regarding bitcoin transactions. The blockchain blocks consist of information in the form of the hashing function, and the size of each block in the blockchain is one megabyte. Thus, the size of bitcoin's blockchain is 350 gigabytes, increasing every 10 minutes.
Bitcoin mining is famous for the process of getting new bitcoin units and adding them to circulation. However, bitcoin mining is not merely adding bitcoin units to circulation but correspondingly verifying bitcoin's transactions and adding the information regarding these transactions to the blockchain. In a nutshell, bitcoin miners maintain the blockchain and keep increasing the size of the blockchain by 1 megabyte every 10 minutes.
As mentioned ahead, double spending is the action of sending single bitcoin units to different wallet addresses at the moment. Therefore, double spending can destroy the entire bitcoin system in seconds but efficiently weed out the problem every single time.
Suppose you try to perform double spending with the same bitcoin unit and transfer one bitcoin unit to different addresses at one time. The transactions you perform will transfer to unapproved transactions criteria.
Bitcoin miners will verify the foremost transaction you processed, and these miners will add information regarding that explicit transaction to the blockchain. After the verification process of the foremost transaction, bitcoin miners will try to verify the second transaction with the exact mechanism. However, the mining algorithm will list this transaction as invalid.
If bitcoin miners try to do both transactions simultaneously, miners will add that transaction to the blockchain, which will have utmost validation. Thus, the blockchain contains information regarding these transactions in a very systematic manner.
The portion mentioned above is everything you should know about how blockchain deals with double-spending.