What Is the Role of the Blockchain’s Consensus Mechanism in Preventing Double-Spending?
The consensus mechanism, such as Proof-of-Work (PoW) in Bitcoin, ensures all network participants agree on the validity and order of transactions. Once a transaction is included in a block and that block is confirmed by subsequent blocks, it is virtually irreversible.
The longest chain rule dictates that the network accepts the history that required the most computational work, making it prohibitively expensive to reverse and double-spend.
Glossar
Longest Chain Rule
Consensus Rule ⎊ Longest Chain Rule is the fundamental protocol mechanism dictating that in the event of a temporary fork, the chain exhibiting the greatest cumulative proof of work or stake is recognized as the canonical and valid history, thus finalizing transactions.
Final Settlement
Resolution ⎊ Final Settlement, within cryptocurrency derivatives and financial markets, signifies the conclusive determination of obligations arising from a contract, typically involving a cash or asset transfer to extinguish all outstanding commitments.
Consensus Mechanism
Validation ⎊ Consensus mechanisms, within cryptocurrency, represent the procedural logic ensuring state agreement across a distributed network, critical for preventing double-spending and maintaining data integrity; their design directly impacts network security and scalability, influencing transaction throughput and finality times, particularly relevant in decentralized finance applications.