Terms associated with cryptocurrency

Reposting since it is making some news again!

Bipin's Blogs

Double-Spending

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…

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