Summary:
This paper proposes an electronic cash system fully realized through peer-to-peer technology, which enables online payment to be directly initiated by one party and paid to another party without going through any financial institution in the middle. Although digital signatures partially solve this problem, if the support of a third party is still required to prevent double-spending, then the system loses its value. Here we propose a solution that enables the cash system to operate in a peer-to-peer environment and prevent the double-spending problem. The network timestamps all transactions by random hashing, and merges them into a continuously extending chain of proof-of-work based on random hashing as transaction records. Unless the full proof-of-work is re-completed, the resulting transaction records will Cannot be changed. The longest chain will not only serve as a proof of the observed sequence of events, but also be seen as coming from the largest pool of CPU computing power. As long as the majority of CPU computing power is not intended to cooperate to attack the entire network, then honest nodes will generate the longest chain that outpaces the attacker. The system itself requires very little infrastructure. Information spreads across the network as best as possible, and nodes can leave and rejoin the network at any time, using the longest proof-of-work chain as proof of transactions that occurred while the node was offline.
1 Introduction
How to solve double spending problem?
Based on cryptographic principles rather than credit.
In this paper, we will solve the double-spending problem by proposing a peer-to-peer distributed timestamp server to generate electronic transaction proofs that are chronologically arranged and recorded. As long as the sum of the computing power controlled by the honest nodes is greater than the sum of the computing power of the cooperative attackers, the system is secure.
What are the weaknesses of the credit-based model?
How to solve double spending problem?
https://github.com/GammaGao/bitcoinwhitepaper article link