Double Spending
By CoinGecko | Updated on Aug 12, 2021
Double spending refers to the act of spending digital currencies twice. This is most commonly applied on crypto exchanges by unscrupulous actors.Typically, a double spending attack involves an attacker who first deposits a cryptocurrency into an exchange, then waits for it to confirm. Once it is confirmed, the perpetrator sells the deposited crypto for another currency, and then proceed to perform what is known as a 51% attack to try and reverse the blockchain (and his deposit).If successful, the perpetrator is then able to deposit his tokens again, likely in a different crypto exchange.
Related Terms
Automatic Replay Protection
Automatic Replay Protection refers to the upgrade implemented by Bitcoin Cash to stop the loss of funds from exchanges through replay attacks.
Cryptocurrency Act of 2020
The Cryptocurrency Act of 2020 is a bill which aims to clarify which federal agencies would regulate which type of crypto assets.
ROI
Short for “Return on Investment”, the ratio between the net profit and cost of investing.
Full Node
Full Nodes are computers that verify the set of rules that are built into the protocols of a given cryptocurrency.
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