How Does Bitcoin Prevent Double Spending?
Money has special identifying marks, and the spender must surrender the coin or note. For example, when buying a candy bar, the customer hands over a 1 dollar bill. He or she offers the coin or paper note and loses control of it.
In the example above, the customer could not spend the same dollar twice because they would no longer have the coin or note. Cryptocurrency does not have a physical form; rather, it is a series of numbers. Since there is nothing to hand over, the owner could spend the same cryptocurrency two or more times in theory. To have value, the first issuers of cryptocurrency had to solve the double-spend problem. Cryptocurrency developers had to create a guarantee against using the value of a cryptocurrency more than once.
The Blockchain Proves Bitcoin
The blockchain is the tool that gives the cryptocurrency value. The blockchain proves its existence, and it proves ownership. The blockchain also provides a barrier to prevent double-spending. The Bitcoin network of nodes receives and verifies information about every Bitcoin transaction. This transparent record proves the cryptocurrency exists, and it defines the ownership.
Once entered in the blockchain, the network confirms the creation and transaction of a Bitcoin or other currency. At any point in time, the blockchain proves existence and records each currency transaction. The complex set of numbers in the blockchain ensure that no one can make unauthorized changes.
Cryptocurrency Usage Grows
Bitcoin and other cryptocurrencies are part of the global financial system. Many individuals, businesses, and corporations use them for their activities, security, and to expand access to financial services. At Koinal, we can help you grow or begin your participation in cryptocurrency ownership.
Open a Koinal account to start purchasing Bitcoin and other leading currencies. Our seamless purchasing process uses bank-issued debit cards and credit cards. Contact us and open an account today!