What Is ‘Double-Spending’ and Why Is It a Concern?
Double-spending is the act of successfully spending the same cryptocurrency tokens more than once. It is a fundamental problem that blockchain technology was created to solve.
In a 51% attack, the attacker sends coins to an exchange, gets credited, and then uses their mining power to reverse the original transaction on the blockchain, effectively getting their coins back while keeping the credit, leading to exchange losses.
Glossar
Blockchain Technology
Principle ⎊ Blockchain technology operates as a decentralized, distributed, and immutable ledger system designed to record transactions across many computers.
Confirmation Status
Definition ⎊ Confirmation Status quantifies the degree of immutability achieved by a cryptocurrency transaction, measured by the number of blocks appended to the blockchain after the block containing that specific transaction.
Mining Power
Capacity ⎊ Mining Power represents the total aggregated computational effort, measured in hashes per second, dedicated by all active participants to secure a specific proof-of-work blockchain at any given moment.
Utxo Model
Architecture ⎊ The Unspent Transaction Output (UTXO) model represents a distinct approach to tracking cryptocurrency ownership, differing fundamentally from account-based systems.