Double spending is the use of money or assets more than once. This is a very important problem especially for digital assets. Because digital data is easier to copy than other assets.
When it comes to digital assets, it is necessary to take serious measures regarding the double-spending problem. In the case of double spending, one of the paid parties suffers because they did not receive the payment. Many of the digital currency projects had failed due to many problems.
But the big reason Bitcoin survives and is so popular is that it provides solutions to many problems encountered in crypto money infrastructure. One of them is the double spending problem.
In Bitcoin, transactions on the blockchain are confirmed by users during mining.
In this way, each transaction is unique and justified for subsequent transactions. Approved data entries prevent transactions from occurring a second time. If the same transaction is desired to be repeated, the nodes participating in the network realize that the transaction is fake and invalidate the transaction. Bitcoin did not enter our lives only as a currency. The philosophical thought system behind it changed the perspective of monetary systems. At the same time, thanks to its technological infrastructure and open source code, it has enabled the development of many new systems and digital assets. With double spending and solving many problems, thousands of crypto and digital assets have emerged after bitcoin and will continue to do so.
Types of attacks
If Bitcoin in the newly initiated transaction is reused in another transaction while it has not yet been confirmed, it is difficult to predict which transaction will be confirmed.
To avoid certain damage from this event, it is best not to accept any unconfirmed payments and wait for the transaction to receive at least 6 confirmations.
In order for this attack to be carried out, mining must be included on top of the fraud.
It is a very difficult attack to perform. It can only happen in cases where a single confirmation payment is accepted.
Vector 76 Attack
It is performed by making Race Attack and Finney Attack together.
Brute Force Attack
A malicious group of miners approves the block with the double payment and returns the seller with confirmation.
The probability of the attack being successful is related to how much of the miners who made the attack have the total hash rate of the Bitcoin system.