What Is a “Race Attack” and How Does It Differ from a Standard Double-Spend?
A race attack is a simpler form of double-spend where the attacker attempts to spend the same coins in two conflicting transactions almost simultaneously. They send one transaction to a merchant (e.g. for goods) and a second, conflicting transaction (e.g. back to their own wallet) to the network's miners with a higher fee.
The goal is to have the second transaction confirmed first, invalidating the first. Unlike a standard 51% attack, a race attack does not require majority hashrate; it relies on network latency and the miner's fee-maximizing behavior.
Glossar
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.
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.
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.