In this tutorial you will learn about Blockchain Double Spending step by step. So without much to do let’s get started.
What is Blockchain?
A blockchain is a continuously developing ledger which continues a permanent record of all the transactions which have taken place in a secure, chronological, and immutable way.
Let’s breakdown the definition,
o Ledger: It is a record this is constantly growing. O Permanent: It means once the transaction is going internal a blockchain, you can put up it completely within the ledger.
O Secure: Blockchain placed information in a secure way. It uses very advanced cryptography to ensure that the data is locked inside the blockchain.
O Chronological: Chronological means each transaction happens after the previous one.
O Immutable: It method as you construct all the transaction onto the blockchain, this ledger can never be changed.
A blockchain is a chain of blocks which include records. Each block records all of the latest transactions, and as soon as finished goes into the blockchain as a permanent database. Each time a block gets finished, a brand new block is generated.
Note: A blockchain may be used for the secure transfer of money, property, contracts, and so forth. Without requiring a third-party intermediary like bank or government. Blockchain is a software protocol, but it couldn’t be run without the Internet (like SMTP used in email).
Blockchain – Double Spending
As really visible here, Salman is tendering a $10 bill to Muskan in exchange of a book. Once the Muskan receives this physical $10 bill, there is no manner for Salman to re-use this money for a few different transaction, because the physical currency is now in Muskan’s ownership.
Now, recollect a state of affairs in which the money is paid in Digital
As the format for money exchange is inside the digital format, it is essentially a binary physical record saved someplace on Salman’s device. After Salman gives this file (digital money) to Muskan, he can also a provide a copy of the file to Sana. Both now think that they have acquired the money while not having any manner of authenticating the digital coin and could therefore deliver their respective goods to Salman. This is referred to as double-spending wherein the sender spends the identical money at a couple of place for acquiring services or goods from more than one providers.
To solve this problem of double-spending, one would employment a centralized
authority to monitor all of the transactions.
The centralized authority, which in common phrases is your bank, continues a ledger e book recording all of the transactions. Now, Salman has to send his digital money to the bank who could make an entry into its ledger debiting Salman’s account. After ensuring that Salman has enough stability to pay for the digital
money which he wants to send, would send the money to Muskan crediting her account in its ledger.
Now, it is assured that Salman can’t double spend the money. If each digital transaction is routed through a centralized authority like this, the problem of double-spending would be solved. This additionally gives another advantage in validating the authenticity of each coin (digital money) that it receives in the transaction. So the fake money (duplicate cash as in the case of Salman paying to Sana the use of a duplicate) would be effortlessly detected and avoided from the circulate.
The introduction of centralized authority though it solves the double-spending problem, introduces some other major problem – the fee of creating and maintaining the centralized authority itself.
As the banks need money for his or her operations, they start cutting commissions on each currency transaction they do for their customers. This every now and then can become as very costly, specifically in overseas transfer of money in which a couple of agents (banks) may be involved inside the entire
deal. All the above issues are solved by using the introduction of digital currency, called Bitcoin. We will now provide you with a brief background on what Bitcoin is before delving into its design and architecture.
This is about Blockchain – Double Spending and we really hope that you have learned something from this tutorial and also share your opinion about this tutorial. What do you think about it and if you think that this tutorial will help some of your friends then do share this tutorial with them.