What Is a ‘Race Attack’ and How Does It Differ from a 51% Double-Spend?
A race attack is a simpler, less powerful form of double-spending where the attacker sends two conflicting transactions almost simultaneously to different nodes or the merchant and the network. The goal is to have the merchant accept the first transaction (the deposit) before the network accepts the second transaction (the reversal) into a block.
It relies on timing and network latency and does not require 51% hash power, unlike the more sophisticated 51% attack.
Glossar
Conflicting Transactions
Resolution ⎊ Conflicting transactions, within cryptocurrency, options, and derivatives, represent instances where simultaneous or near-simultaneous instructions challenge the deterministic order of execution, potentially violating established precedence rules.
Race Attack
Momentum ⎊ Within cryptocurrency derivatives and options trading, a "Race Attack" describes a coordinated, high-frequency trading strategy designed to rapidly exploit short-term price dislocations arising from order flow imbalances, particularly in less liquid perpetual futures contracts.
Network Latency
Propagation ⎊ Network latency, within cryptocurrency, options trading, and financial derivatives, represents the time delay for data transmission across a network, critically impacting trade execution speeds and arbitrage opportunities.