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How Blockchain Mitigates The Possibilities Of Double Spending Of Bitcoin?

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.

Iram Martins
Oct 12, 2021

Table of Contents

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 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.

Understanding basics of blockchain!

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

What is the size of 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.

Who maintains bitcoin's blockchain?

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.

Blockchain dealing with double-spending!

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.

Iram Martins | Personal trainer. Aspiring sommelier. Brunch critic who works part-time. When I'm not competing, you'll find me at dog beaches with my black lab or sipping drinks at the best bars in town. I like to fly a lot.


Bitcoin in the Next Decade

Bitcoin came into the market as a revolution. In the current finance ecosystem, it behaves like a through the thing. Although it is volatile, the overall picture of Bitcoin has remained too rosy to cash. When we see the introduction of Bitcoin coming in a big way, we see some change taking place.

Can a local business accept bitcoin?

Nowadays, many startups and small businesses have come into existence. Everyone uses mobile phones, and everyone wants to pay digitally rather than in cash. There are multiple online payment options like Google Pay, Phone, Paytm, PayPal, Card swipe, QR code, UPI, and many more, and it makes the payment easy.

Earn good money with bitcoins – What are the top methods?

The primary motive of every person in life is to earn money. There are numerous ways to earn money, but bitcoin is the perfect option if you want to do it uniquely and easily. Bitcoin is not only a cryptocurrency that allows you to make payments, but it also provides you with several methods through which you can earn money, and some of them are listed below.

Do Bitcoin Benefits Overshadow Its Risks?

Bitcoin's journey has been quite interesting as it has ride waves of market volatility and interest of the public, but the main reason behind swings in its price is an actual reality. The crypto world is massive as thousands of cryptocurrencies exist in it and offer significant advantages to users.

Is bitcoin taxable or not?

It is difficult to say whether bitcoin is taxable because in some countries, bitcoin is taxable, and in some countries, there are no rules for bitcoin. Some countries banned bitcoin because it is a decentralized system that means the government cannot control the bitcoin and cannot trace and charge tax for bitcoin transactions.

The Basic knowledge of blockchain

Bitcoin was launched in 2008 by Satoshi Nakamoto to make the digital world. Yes, there were a lot of problems before bitcoin. For example, people use fiat currency, and if they want to transfer money abroad or outside the country, they need to pay high charges to third parties like banks and financial institutions.

Different ways to make money with cryptos!

Everyone is talking about cryptocurrencies nowadays. For most people, it is just a method for trading. However, if you look at the bigger picture, it is not only trading that has made it so popular. You can go for other methods of making money with cryptocurrencies, provided you are aware of them. First of all, you need to get the small picture of cryptocurrency.

Finding the 'Right' time to invest in Bitcoin

Far from being a red flag best avoided, this is testament to the fact that with Bitcoin more than most other trades, timing is an imperative aspect of success, though perhaps not in the ways that you might assume. As such, while there isn’t exactly a ‘right’ time to trade, these tips can at least help you to find the time that works best for at least helping you to earn big from your efforts here.

Will NFT go up in value? Understand why some are worth millions

The recent popularity and increased demand for NFTs or non-fungible tokens mean that the crypto world may be moving to a new unprecedented high.

Crypto in El Salvador

El Salvador became the first country in the world to recognize Bitcoin as legal tender. All organizations will be obliged to accept cryptocurrency here, it will be possible to pay taxes with it, and special wallets will be opened for citizens.

Top 5 ways to invest in Blockchain technology boom

Amidst the strong headlines of Covid -19 and its impact on global economies, something else was happening behind the scenes. It was the rush to invest in the growing blockchain technology. Business owners, investors, and key players across all industries are increasingly getting into the transformative blockchain technology.

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