The double-spending problem was first discussed in Satoshi Nakamoto's Bitcoin whitepaper as a challenge for decentralized electronic systems.
The Double-Spending Problem
Double-spending occurs when the same digital asset is used twice. This is a challenge in the absence of a centralized trust intermediary like a bank. Nakamoto proposed using blockchain to track transactions and prevent this issue.
What is a 51% Attack
A 51% attack happens when an attacker gains control over the majority of the computational power in the network, enabling them to manipulate the blockchain, including double-spending. In the Bitcoin network, such an attack is theoretically possible but requires significant resources.
Risks of 51% Attack for Bitcoin and Altcoins
While Bitcoin is protected against a 51% attack due to its high level of difficulty, smaller networks, such as Ethereum Classic and Bitcoin Gold, are vulnerable. The economic gain from an attack may outweigh the costs for less secured networks.
Despite the theoretical possibility of a 51% attack, Bitcoin is largely protected due to its high computational power. However, less powerful networks remain vulnerable.
