BSV Users Shows Himself Double-Spending Coins on a 0-Confirmation Transaction
It seems that it might be possible to double-spend BSVs when there are 0-confirmation transactions. Bitcoin SV was born as a fork from the Bitcoin Cash (BCH) network after an upgrade that started on November 15.
During a double spend attack, a user is able to spend twice his virtual currencies taking advantage from the fact that BSV allows for zero-confirmation transactions. That means that a user is able to send BSV without having to wait hours or minutes for a transaction to be processed by the network. Most of the cases in which double spendings are possible are related to 51% attacks.
The Bitcoin network seems to have been free from these attacks since it is much more difficult to attack the network or simply because merchants wait for several confirmations to accept a transaction.
In a recent video uploaded by the user ‘reizu’ it is possible to see that an individual is able to double spend his BSV.
The user wrote how he carried out this attack and why it was possible to do that. He mentioned that he took advantage of the fact that the network is centralized and he sent multiple expenses through different nodes.
According to Reizu, if the nodes want to avoid this attack they will have to communicate with each other as soon as they receive a double-spending transaction. If they ignore it, it does not make sense.
Craig S. Wright, one of the main supporters of Bitcoin Cash SV said on Twitter that there is no evidence and no reproducibility.
— hondsny (@honsny) December 8, 2018
About Bitcoin SV, Ryan X Charles, the CEO of Money Button, said that Bitcoin SV can be exploited with double-spending transactions.
However, he said that double spend attacks don’t happen very often and businesses could pay the costs if the benefits outweigh them. About it he mentioned:
“First of all, if the double spends don’t usually happen, then it’s just a business question if do the benefits outweigh the costs. If there’s a little bit of fraud, so long as that fraud isn’t overly expensive and you’re earning more money than you’re losing and fraud. It’s acceptable, although you certainly want to minimize fraud.”
In order to solve this issue, it might be possible to have insurance that can guarantee an instant transaction and an insurance company taking the cost of the fraud. This would allow for instant transactions in a reliable way.
At the time of writing, Bitcoin SV (BSV) is being traded around $99 and it has a market capitalization of $1.73 billion.