Altcoins

Double Spending Possible In Bitcoin Cash SV

Double Spending Possible In Bitcoin Cash SV

Bitcoin Cash SV (BSV) faces negative news after a researcher reported how a user could double spend, displayed in a video.

Double Spending in Bitcoin Cash SV

A video, released on December 8, explains how a double-spending attack is possible on the Bitcoin Cash SV blockchain. Researchers show how any user could spend the same coins twice on its network in a “0-confirmation transaction.”

Bitcoin Cash is a hard fork from Bitcoin, created in August 2017. Bitcoin Cash improved features and uses 0-confirmation to allow almost instant transactions. It means that the following block almost always confirms the transactions.

Ledger Nano S - The secure hardware wallet

During a multi-phase test, including a video demonstration, a user succeeds in double-spending BSV tokens in a 0-transaction. The user is known as “Reizu.” He demonstrates the vulnerability to attack the cryptocurrency. In an earlier announcement, Craig Wright claimed that only miners could do what Reizu did. According to the video, Wright is wrong.

The double spending demonstration, filmed with POP!. A POP! is a point of sale (PoS) retail application that includes double spending detection. In a post on Honest Cash Reizu stated:

“I’ve done many double-spending on the Bitcoin SV network.”

Honest Cash is a Bitcoin Cash-based social network created after the hard fork in November this year. According to their webpage, they created the page in response to the censorship they reportedly observed on other platforms.

Will Bitcoin Cash SV be part of the future?

Bitcoin Cash SV has climbed its way to the top. According to Coinmarketcap.com, it is ranked number 8 by market capitalisation. However, Reizu argues that Bitcoin Cash SV is highly centralised and that the same nodes verify the majority of the transactions.     

“Indeed, after a few mined blocks I discovered that the transactions that were mined were those that were sent almost always to the same nodes. I also confirmed what we already knew, that Bitcoin SV mining is very centralised. Out of a total of 450 nodes, I concluded that just four control 75 per cent of the network’s total hash rate.

There is a lot of negative noise in the market currently, and 2018 is a year where the price has crashed. It is important to not see one year as the state of the market but to see the big picture. At least that is the statements of several investment funds. They argue that this is just a bump in the road and that the future is bright when it comes to the blockchain.

Photo by Tim Gouw from Pexels