Concept
How does the blockchain prevent double-spending?
chapter 5 / Building the Blockchain
"Digital money is vulnerable to double-spending because a digital token can potentially be copied and sent to more than one person. Satoshi Nakamoto addressed this problem through a public blockchain ledger that records credits, debits, and balances rather than trying to make each currency token physically uncopyable. The ledger creates shared rules that allow participants to determine which transaction is legitimate and which later attempt to spend the same balance must be rejected."
Related Ideas
- How does the Yap ledger illustrate decentralized record-keeping?chapter 5 · Building the Blockchain
- What role does the Internet play in decentralized money?chapter 5 · Building the Blockchain
- Trusted institutions verify transactions and maintain financial records.digital money · introduction
- Banks became intermediaries by recording balances, transferring money, and connecting savers with borrowers.digital money · introduction
- Modern finance relies on many intermediaries, which can introduce fees, delays, and dependency.digital money · introduction
- Money depends on confidence that value can be received, stored, and exchanged.digital money · introduction