- The recent headlines and twitter reports are flooded with a double-spend that took place at Bitcoin
- Ardoino explained the actual scenario that took place and also mentioned that such a thing could occur at times and is not actually a ‘double-spend’
- Looking deeply, we get the explanation that multiple minings had created a split in the Crypto network thereby leading to the transaction of two amounts using the same set of coins, by a process of chain-reorganization
In a recent development, several conversations between Twitter users suggest that the only thing that Bitcoin was trying to prevent was ‘double-spending’. Two transactions were made using the same digital currency by the Bitcoin Network and this did not happen in the usual or traditional manner. This news has certainly grabbed the attention of all the news headlines creating a misunderstanding about Bitcoin’s credibility and how it actually works. Such an incident is quite common, and is very much possible to happen in a single block through chain re-organization, as was mentioned by the COO of OKCoin exchange, Jason Lau.
THE EXPERTS HAD CERTAIN VIEWS TO PUT IN, BASED ON THE NEWS
Paolo Ardoino, the CTO at Bitfinex quoted:
‘Cryptocurrencies seem to have retreated today amid unsubstantiated speculation that a ‘double spend’ had occurred on the Bitcoin blockchain. In fact, what happened is that two blocks were mined simultaneously. As a consequence, there was a chain reorganization, which did not result in double spending. Those looking with glee at the sea of red across cryptocurrency markets today will come to realise to their peril that a long-term bet against bitcoin will be a losing one.’
Several people flooded Twitter with their views explaining the news to the mass, Pompliano tweeted saying that it was not really a double spend, and requested everyone to calm down. On the other hand, Antonopoulos tweeted clearly explaining the scenario of what happened. He mentioned that both the transactions were made from the same parent block within a timespan of 10 minutes.
THE ACTUAL SCENARIO THAT HAPPENED AND HOW IT HAPPENED
The double-spend case included the same set of coins being transacted from the same wallet which were however, registered to two different blocks. However, this was not exactly a double-spend, as per many experts because Bitcoin’s Network validated only one of the two transactions that were made and that one could not spend the other set of coins as it has been deemed invalid by Bitcoin Network.
In actuality, a split was generated due to mining of the pool from time to time which adds both the miners to the very same pool and therefore creates a chance of double-spend. This incident came into picture after being revealed by BitMex Research that abnormalities were noted on the block of 666,833, at first it seemed like a scenario of ‘double-spend’ but the confusion was clear later.
The sender tried to replace the originally sent low fee of 0.00062063 due to which this happened. However, RBF, instead of replacing the earlier slow transaction cleared the second fee transaction, which gave a way to the transaction of the higher amount of fee to the stable block.
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