Double Spending Attack¶
links: DSS TOC - Decentralization - Index
Double Spending Attack¶
The Double Spending Attack is the act of writing the same transaction with different recipients, so that the same coin is spent twice \(\rightarrow\) therefore double spending.
The Problem is approximately solved by the BlockchainCoin under following assumptions:
- Network will always find consensus eventually (see Eventual Consistency)
- The Recipients of a payment wait long enough before delivering their assets (waiting in this context means that a transaction has enough confirmations, so that it can be seen as final Transaction Confirmation)
- Nobody controls close to half of the network (which is hard according to IncentiveCoin)
Probability of a Successful Double Spending Attack¶
- original calculation by Nakamoto and improved by Rosenfeld
- the probability that an attacker reverses a transaction depends on:
- the attacker's hash rate as a percentage of the entire network
- the number of confirmations of the transaction
- the probability decreases exponentially with the number of confirmations
- we assume an (economically) rational attacker: such an attacker will only perform attacks that are profitable \(\rightarrow\) weighs the gain of a successful attack with their respective probabilities
Maximal Safe Transaction Value
- In Incentive Coin, we now know the gains and losses and can compute a maximal safe transaction value (analysis of Rosenfeld with some assumptions like block reward value)
- in this table, we can see how much transactions we have to wait for a specific transaction value (e.g. 1'000 BTCs), if we assume an adversary model of a specific percentage of computational power of the network (e.g. the attacker owns 20% of the computational power)
- Example: we have a transaction of 800 BTCs and the attacker has 30% of computational power. The Maximal Safe Transaction Value table told us to wait in minimum 8 transactions (after this amount of transactions, a double spending attack would not be valuable for an rational attacker)
links: DSS TOC - Decentralization - Index