The double spending problem explained.

Описание: Blockchain was invented to solve the double-spend problem in a decentralized manner. This video explains what that problem is, and how it has been solved.

The double-spend problem is: how to prevent people from spending their money twice.

In the real world, this is achieved by making cash difficult to forge.

In the centralized banking world, it is achieved by the bank religiously ensuring that their databases are updated with your new bank balance every time you spend.

Blockchain is a decentralized solution to the double-spend problem, in which a peer-to-peer network accurately maintains the consistency of a distributed ledger through the use of a consensus system.

My next video will explain how a 51% attack can overcome this decentralized solution.