The biggest issue users are fearful of while practicing digital transactions is the double-spending issue. The blockchain double-spending problem refers to the incidence of spending the same money twice. Blockchain prevents the double-spending problem by involving various confirmation processes in between which authenticates the transactions.
Now, before we understand how blockchain prevents the issue from eventful let’s understand the issue more clearly.
Understanding Double Spending Problem
Transactions can happen in two ways- Online and Offline. Online Transactions are those where the transfer of money takes place digitally (for ex- bitcoin). Offline Transactions are those where cash or any sort of physical currency is given to make the payment.
Let’s take an instance, where you buy ice cream for $10. You give them money and take the ice cream. Now, can you spend that same $10 for purchasing any other thing? The answer is NO! Because that $10 is already given to the ice-cream seller and you don’t have it with you anymore. Now if you want to purchase any other thing, you have to spend another $ which is still with you. This implies that double-spending problems can never occur with physical currency.
However, it is not true with digital currency. Once a digital transaction is initiated, due to some technical fault, the same amount can be deducted from your account twice known as a double-spending problem. This issue can occur with any form of digital transaction. Thus, it is a potential threat to the adoption of digital transactions.
How does Blockchain Prevent Double Spending Problems?
As said earlier, Bitcoin prevents the double-spending problem by authenticating the transactions and maintaining a distributed universal ledger system called a blockchain. Let’s see how it works-
Suppose you have 10 BTC which you try to send to two different persons twice. First, you send 10 BTC to person A then you try to send the same 10 BTC to person B. Now what will happen is that both the transactions will go into the pool of unconfirmed transactions where many unconfirmed transactions from different users are already present.
Several transactions in that pool are waiting for confirmations while others are not picked by anyone in a long time. Out of the two, whichever transaction gets more confirmations and verified by miners will be authentic and the other will be pulled out from the network because of fewer confirmations. In this case, Person A will receive the bitcoin and another transaction will be canceled.
What happens if both transactions are picked by the miners at the same time?
At times, when both the miners pick both transactions at the same time and create a block, both person A and person B will wait for their transactions to get confirmed. In this situation, whichever transaction gets validation first gets confirmed and the other will be pulled out from the pool.
Now the second situation is if Person A and Person B receive the first confirmation at the same time. This situation will initiate a race between them. In this case, the transaction will get max. a number of confirmations from the network will be accepted and others will by default get discarded.
Blockchain Technology solves various similar issues and is one of the best methods to solve the double-spending problem. It helps in overcoming all the challenges faced in digital transactions. This also helps in tracking the transactions because once the transaction is verified it gets penned in the universal ledger distributed across all network channels. According to the system, every 10 minutes, the block comprising various transactions is added to the ledger which is distributed to every node making it known to everyone.
Need Support with the Blockchain Double Spending problem? Call Blockchain Customer Support Number
Take help from the experts if you are facing any double-spending problem and share your issues directly with the experts. Call the Blockchain customers to support number and get immediate assistance from the support team. This will make the adoption of blockchain technology easy and widespread making this method of digital transactions more secure.