I know of 2 ways how the double spend problem is solved. Here is the Bitcoin way:
Bitcoin network is non-hierarchical and it solves the double spend problem in a decentralized way: All nodes on the network can read all BTC addresses and all of their transactions. Thus nodes can independently verify that no coins are spent twice. This is reinforced by PoW consensus.
Here is how fiat banking seems to solve the double spend problem:
Bank network is hierarchical. The double spend problem is solved in a concentrated way at the central bank, which oversees funds and transactions between its nodes - commercial banks. Commercial banks then enforce that their nodes (clients) can't double spend funds between each other. Clients use cash to transact between each other, but since cash is physical, it can't be double spent.
Is there a 3rd way to solve the double spend problem?
[link] [comments]
You can get bonuses upto $100 FREE BONUS when you:
π° Install these recommended apps:
π² SocialGood - 100% Crypto Back on Everyday Shopping
π² xPortal - The DeFi For The Next Billion
π² CryptoTab Browser - Lightweight, fast, and ready to mine!
π° Register on these recommended exchanges:
π‘ Binanceπ‘ Bitfinexπ‘ Bitmartπ‘ Bittrexπ‘ Bitget
π‘ CoinExπ‘ Crypto.comπ‘ Gate.ioπ‘ Huobiπ‘ Kucoin.
Comments