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Consensus is what addresses the "double spending" problem of digital money.
If there were any way the user of a cryptocurrency could spend their coins more than once, it would undermine the entire system.
best crypto exchanges with low fees india ✌️【365vc.net】✌️Invest ₹500 in our expert-managed funds and enjoy exponential monthly profits. Join now!The currency would be worthless.This is a tricky problem, especially with online currencies that have no central authority, such as a bank or a government, to keep track of how much money each person has, how they’re spending it, and whom they’re paying.The Bitcoin network was the first to solve this problem with proof-of-work.
Proof-of-stake has emerged as a possible alternative that some researchers think is both more energy efficient and more secure.It's not so hard to prevent double spending in a centralized manner, when there's one entity managing a ledger of all the transactions.
best crypto exchanges with low fees india ✌️【365vc.net】✌️Maximize your returns with smart investments. Monthly profits of up to 100%!When Alice sends Bob $1, the manager of the central ledger simply takes $1 from Alice and gives $1 to Bob.
PayPal does exactly that.But cryptocurrencies are different.
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Until Bitcoin came along.
Proof-of-work is the innovative algorithm that Bitcoin creator Satoshi Nakamoto came up with, making decentralized money without a leader come to life for the first time.Some argue proof-of-work has problems.
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You often hear critiques that Bitcoin uses as much energy as all of Argentina or some other nation.
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