Double-Spending
The potential flaw in digital currency systems where the same token is spent more than once.
In-Depth Explanation
Double-spending was the central problem Bitcoin solved. Without a trusted third party, what prevents copying digital money? Bitcoin's blockchain uses proof-of-work consensus to establish a single transaction history. Once confirmed in enough blocks, reversing a transaction becomes computationally infeasible. This is why exchanges wait for confirmations before crediting deposits.
Related Terms
More in Trading & Markets
View all →Slippage
The difference between the expected price of a trade and the actual executed price.
Maximal Extractable Value
MEVValue that can be extracted by reordering, inserting, or censoring transactions within a block.
Sandwich Attack
An MEV extraction technique where an attacker places transactions before and after a victim's trade to profit from the price impact.
Frontrunning
Placing a transaction ahead of a known pending transaction to profit from the anticipated price movement.