dubbelspendering

Dubbelspendering, a Dutch term, translates to "double spending" in English. It refers to the fraudulent act of spending the same digital currency more than once. In traditional physical currency, this is impossible because once a banknote or coin is spent, it is no longer in the possession of the original owner. However, in the digital realm, where currency exists as data, the potential for unauthorized duplication and subsequent spending exists.

The challenge of preventing double spending is a fundamental problem in designing digital cash systems. Without a robust mechanism to track and verify transactions, a user could theoretically copy and paste their digital money and send it to multiple recipients. This would undermine the integrity and value of the digital currency, rendering it worthless.

Various solutions have been proposed and implemented to combat double spending. In centralized digital payment systems, a trusted intermediary, such as a bank or payment processor, is responsible for verifying transactions and ensuring that each unit of currency is only spent once. This intermediary maintains a ledger of all transactions and prevents duplicates.

Decentralized systems, most notably those employing blockchain technology like Bitcoin, address double spending through a distributed ledger and a consensus mechanism. Transactions are broadcast to a network of participants, and once a transaction is validated and added to the blockchain, it becomes immutable. This consensus process ensures that all participants agree on the order and validity of transactions, making double spending practically impossible without controlling a significant portion of the network's computing power.