Terms associated with cryptocurrency


There can be a possibility that the holder of the digital token can copy it and send it to a merchant while keeping the original to himself.

Double Spending is the risk that a digital currency can be spent twice.

However, Bitcoin has a mechanism based on transaction logs to verify the authenticity of each transaction and prevent double-spending.

Since the Blockchain comprise of blocks which contain each transaction history, double spending is avoided. This mechanism ensures that the party spending the bitcoins really owns them.


51% Attack

The rules by which Blockchains are governed by the miners. If a group of miners who control more than 50% of the network’s mining hashrate, or computing power collaborate, they can make unethical rules, reverse transactions, could double spend the coins. Such an attack is referred to as 51 % Attack.

Krypton and Shift, two blockchains based on ethereum, suffered 51% attacks in August 2016.



3 thoughts on “Terms associated with cryptocurrency

  1. You really make it appear so easy together with your presentation however I in finding this matter to be really one thing which I think I would never understand. It kind of feels too complex and extremely vast for me. I’m looking ahead in your next publish, I’ll try to get the cling of it!


    1. Hi Alex, Thanks for the encouraging comment. Means a lot.

      While I will be writing more on it soon, you might like to visit https://bipinsblog.com/2017/12/02/bitcoins-all-you-need-to-know/ to know a little about Bitcoins; https://bipinsblog.com/2017/12/02/bitcoin-mining-and-blockchain-all-you-need-to-know/ to know about Blockchain; and https://bipinsblog.com/2017/12/02/the-hash/ to know about Hash, the underlying mechanism over which Blockchain works and applications like Bitcoin etc are made.

      Thanks again


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