Why Is Double-Spending Impossible with Physical Cash?
Physical cash is impossible to double-spend because it is a tangible, unique item. Once a dollar bill is handed over in a transaction, the payer no longer possesses it and cannot spend it again.
The physical transfer of the object inherently prevents the simultaneous use of the same unit of value in two different transactions. Digital currency lacks this physical constraint, necessitating cryptographic and consensus solutions.
Glossar
Simultaneous Use
Efficiency ⎊ Simultaneous use refers to the concurrent deployment of a single asset or resource for multiple financial or operational functions.
Physical Transfer
Delivery ⎊ Physical Transfer, in the context of digital assets, refers to the movement of the underlying asset, such as the actual delivery of a commodity backing a tokenized derivative, rather than just the transfer of the digital token itself.
Digital Currency
Volatility ⎊ Digital currency, within the context of cryptocurrency, options trading, and financial derivatives, represents an asset class characterized by pronounced price fluctuations, necessitating sophisticated risk management protocols.
Cryptographic Primitive
Foundation ⎊ These are the basic, non-decomposable cryptographic tools, such as hash functions and digital signature schemes, upon which all higher-level security protocols are constructed.
Unit of Value
Concept ⎊ A unit of value serves as a standard measure for expressing the worth of goods, services, and assets within an economic system.