While the rudiments of cryptocurrency were being formed, financial analysts put several contexts into play to ensure perfection. One of these contexts was the issue of double spending. In fiat currency, it is impossible to spend a dollar bill twice as there is no other dollar bill as yours in the entire world.
Moreover, it's impossible to split the dollar bill into purchasing two different products worth one dollar each. However, it was different in the decentralized world where bitcoins can neither be seen nor held. PLC Ultima explains how pioneer blockchain developers implemented the Blockchain to prevent the same bitcoin from being spent more than once.
Double Spending in the Decentralized World
PLC Ultima aims to let you understand double-spending by first explaining how the Blockchain works. In the Blockchain, creating one block also creates a corresponding hash or secret number. This secret number comes with some information (the block's timestamp, some vital information about the previous block, and the information of the executed transaction.)
This information is kept encrypted via a security medium ( For Bitcoin, this medium is known as the SHA-256 algorithm. It can be different for other cryptocurrencies, especially those not forked from Bitcoin.) The block information is now verified by validators or miners, easing the closure and the creation of another. For verifying, the miner is awarded some Bitcoins.
For double spending to occur, PLC Ultima highlights that such individuals must create a secret block away from the Blockchain. Then, the person must make it compatible via cross-chain to Bitcoin's ecosystem. To progress, the Bitcoin Blockchain would have to recognize and add it as a node, allowing the person to give themselves any cryptocurrency spent or sent. However, this is only possible.
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How Does the Blockchain Prevent Double Spending?
Double spending is almost impossible in the Blockchain, as the chances of someone executing this are slim. For double spending to occur, PLC Ultima states that the transaction has to be accepted and validated by the group of miners and transactions in the Blockchain moves so fast that it would be impossible to catch up with it. The data you choose to input and bypass your transaction would become outdated and rejected by the Blockchain. With the Blockchain, most crypto drawbacks were solved while maintaining decentralization and speed.
What Happens When Several Miners Take up the Same Transaction Block?
Many crypto enthusiasts are curious about possible errors validators face while mining or recording transactions. There have also been worries about several miners taking up the same transactions, thus needing clarification. However, this situation has been resolved several times.
Something like this happens, Alice and Bob take up the same transaction and begin creating a block; the Blockchain would have to confirm the blocks first, and anyone whose block gets confirmed first wins and gets rewarded. Whichever transaction gets the highest confirmation approval by the network gets incorporated into the Blockchain, while the other is discarded.