Double Spend is a problem of double spending coins in cryptocurrency, which is solved by particular transaction verification technologies.

Digital coins are a specific asset that is expressed exclusively in electronic form. Therefore, it is quite logical that there is a potential problem of double spending of the same funds in one time interval - Double Spend. To solve this problem effectively, unique methods are used to validate payments and prevent this phenomenon.

Solution

To ensure fairness and transparency of the conditions for the use of cryptocurrencies for each participant in the system, special mechanisms have been introduced that make it possible to eliminate fraud by double-using the same money to make payments with different outputs. Such conditions are supported by the blockchain architecture and the validation of each payment by adding each transaction to a block. The more confirmations (additions to the block), the higher the level of security for using digital coins. After the user broadcasts the transaction, it is not immediately added to the block. First, miners check the existence of funds from the user and the balance on the balance. The transaction is confirmed if the data does not cause problems applying the specified amount. This eliminates the risk of using the same coin repeatedly. This is also facilitated by transferring the right to use a specific digital asset from one user to another.

Due to the open-source code, the transparency of each payment is ensured because the information is available to all community members. However, this is also achieved through the use of special cryptographic keys to confirm the transfer of money and its receipt.