DOUBLE SPENDING IN CRYPTOCURRENCIES?😳
What does it mean and what you should know!!
A thread👇👇
What does it mean and what you should know!!
A thread👇👇
Now you might be wondering what double spending means right?
It basically means spending a token or asset more than once.
Now how is that so? Follow me👇
It basically means spending a token or asset more than once.
Now how is that so? Follow me👇
As usual, I love to break down my threads using relatable examples.
Have you ever seen two/three persons who are actually fighting over a land? Ohw, even if you have not, you must have seen it in movies.
Have you ever seen two/three persons who are actually fighting over a land? Ohw, even if you have not, you must have seen it in movies.
Its either that they’re complaining that one person sold the same land to them or some other related scenario.
We experience things like that everytime that’s why people take precautionary measures when buying lands. Not just lands, other assets too so they don’t end up RUGGED.
We experience things like that everytime that’s why people take precautionary measures when buying lands. Not just lands, other assets too so they don’t end up RUGGED.
Now going down to physical cash, we all know it’s impossible to spend cash twice.
How do I mean? Let’s say I sell oranges and you need 10$ worth of it. You will simply give me the 10$ and I will give you the oranges you asked for.
How do I mean? Let’s say I sell oranges and you need 10$ worth of it. You will simply give me the 10$ and I will give you the oranges you asked for.
There’s absolutely no way on earth you’re going to take back the 10$ from me just to use it to make payment for some other things in the market unless maybe you decide to steal it from me or maybe kill me and take it from me.
Now coming down to digital currencies. Digital currencies consists of a digital file that can be duplicated or falsified. Since cryptocurrencies are digital currencies, things like this is also possible.
This leads to inflation by creating a new amount of copied currencies that was never in existence. This also devalues the currency relative to other monetary units or goods and therefore reduces the trust of the users as well as the circulation and retention of the currency.
Whooshhh, now don’t get scared😅😅
That’s why cryptocurrencies are built on the blockchain.
Blockchain is an open source decentralised distributed ledger technology where transactions are recorded with an immutable cryptographic signature.
That’s why cryptocurrencies are built on the blockchain.
Blockchain is an open source decentralised distributed ledger technology where transactions are recorded with an immutable cryptographic signature.
The blockchain uses cryptography to secure data on the blockchain which is why data cannot be altered making it Immutable. When you make a transaction, it goes through a verification process by either the miners or validators on the blockchain network before it is verified.
That way, no one can spend what they don’t have and no one can spend same coin/token twice.
I hope you got value from this thread😌😌.
Don’t forget to follow me for more educative threads and also don’t forget to like and retweet.
❤️&💡
I hope you got value from this thread😌😌.
Don’t forget to follow me for more educative threads and also don’t forget to like and retweet.
❤️&💡
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