The Double spending problem …

(Welcome to the second article of our article series — “Cryptocurrency & blockchain” where we would look at different aspects of the emerging technologies associated with blockchain & it’s affect on economics , technology & society )

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This is the problem which kickstarted the journey into creation of the very first blockchain and bitcoin (which is based on the blockchain) by Bitcoin’s legendary Satoshi Nakamoto. But what is double spending problem & how can it be solved ? Before answering all of these questions let’s look at the most common scenario on making payments -

So let’s assume that there is a marketplace in South Carolina where Killary Flinton is selling bananas 🍌 and Ted Bruz is selling guns 🔫 and Tonald Drump wants to buy $100 worth of bananas and also a gun which has a price of $100 , but he only has $100 in his bank account , so he could either buy 🍌 or a 🔫 and he cannot buy both of these items simultaneously.

And now let’s look at another scenario in which the double spending scenario comes into the play -

Now let’s assume the same scenario as above , where Killary Flinton is selling 🍌 and Ted Bruz is selling 🔫 & Tonald wants to buy both of these items priced at $100 , but this time Tonald comes up with an idea💡of creating a digital currency💰 called as “Drump coin” and both Killary & Ted agree to sell their respective items in 100 Drump coins (1 Drump coin = 1$) for each product , but Tonald only has 100 Drump coins , so Tonald copies his digital currency 💰 to create an additional 100 Drump coins to make both the payment and both Killary & Ted are happy because they got 100 Drump coins and Tonald is happy because he got 🍌 & 🔫 , but in reality both Killary & Ted didn’t get the fair share because , after Tonald doubled his currency by copying the file , he actually reduced the value of Drump coin & it’s no longer worth $1 and it becomes a huge problem because of inflation , but the biggest problem isn’t inflation , but rather it is mistrust which has been created in the economy because of the currencies like Drump coin because if a currency can be created without any limit on how much of it can be created then the currency would become worthless …

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