Double-Spending Problem

    The “double-spending problem” refers to a critical risk associated with digital currencies in which funds can be copied and spent multiple times. The spender transfers physical cash to the receiver, who is unable to spend it again when using fiat currency. Blockchain systems for digital currency are designed to prevent the same digital coin or token, such as bitcoin (BTC), from being sent to more than one address. Various mechanisms that verify the authenticity of all transactions reduce the risk of double-spending with cryptocurrencies.