What Is “Double-Spending” and How Does RBF Relate to It?
Double-spending is the act of successfully spending the same cryptocurrency funds more than once. This is prevented by the blockchain's consensus mechanism and immutability.
RBF allows a user to replace an unconfirmed transaction with a new one, potentially to a different recipient. While RBF is not inherently double-spending, it can be exploited in zero-confirmation transactions to replace a payment.
Glossar
Spending the Same Funds
Attempt ⎊ Spending the same funds, commonly known as a double-spend attack, involves an attempt by a malicious actor to use the same cryptocurrency units in two separate transactions.
Granting Spending Permission
Permission ⎊ Granting Spending Permission is the explicit, on-chain action by which a token holder authorizes a specific smart contract or external address to move a predetermined quantity of their fungible tokens.
Rbf Feature
Feature ⎊ Replace-By-Fee (RBF) is a protocol-level capability allowing a user to broadcast a subsequent transaction that replaces a previously unconfirmed one by paying a higher transaction fee.
UTXO Spending Rules
Principle ⎊ UTXO spending rules define the fundamental principle that every unit of cryptocurrency value must be spent entirely and explicitly referenced from a previous, unspent transaction output.
Treasury Spending Decisions
Allocation ⎊ Treasury Spending Decisions refer to the process by which a decentralized autonomous organization (DAO) or foundation allocates its reserve capital, often held in native tokens or stablecoins, to various operational and strategic needs.
Spending Same Coins Twice
Error ⎊ This describes the fundamental security failure, known as a double-spend, where an attempt is made to use the same unspent transaction output in multiple conflicting transactions.
Spending UTXOs
Process ⎊ Spending UTXOs (Unspent Transaction Outputs) is the fundamental process in the Bitcoin and UTXO-based cryptocurrency model where a user selects one or more previously received, unspent transaction outputs to serve as the inputs for a new transaction.
Double Spending Solution
Integrity ⎊ The double spending solution is the critical mechanism within a cryptocurrency protocol that ensures a single digital unit cannot be simultaneously transferred to multiple recipients.
Rbf Enabled Deposits
Feature ⎊ RBF enabled deposits denote an incoming cryptocurrency transaction where the sender has explicitly signaled their intent to potentially replace the unconfirmed transaction with a new, conflicting version.
Peer to Peer Electronic Cash
Transfer ⎊ Peer to Peer Electronic Cash describes the foundational concept of a digital payment system that operates without reliance on a central authority for transaction validation or settlement.