Bitcoin (BTC) protocol flaw? Denial of rumours
Rumours of a loophole in the Bitcoin protocol have been circulating in the media in recent hours.
- But the phenomenon of „double spending“ on the protocol has not occurred.
- The Trust Project is an international consortium of media organisations based on transparency standards.
- Has a loophole been discovered in the Bitcoin Protocol (BTC)? Explanations and background on the rumours.
Explanations of the event
Bitcoin earned more than $3,000 this morning after falling sharply overnight to $28,750. The BTC was trading at over $31,500 at the time of publication.
Several analysts attributed the sudden drop in price by a Bitcoin Billionaire review to rumours of „double spending“ in the Bitcoin protocol – a term used to describe the phenomenon where a person can spend the same BTC twice.
BitMEX Research revealed that one transaction had been validated by 2 different miners in 2 different blocks. A rare phenomenon that proved to be true, however, one of the transactions was never recorded on the blockchain.
One user used a „replace by fee“ feature that allows a fee to be added to a transaction that had already been issued. This speeds up the verification of the transaction. For example, 2 minors „fought“ to validate the same transaction.
The protocol then proceeded with a reorganization in which the second mined block was rendered obsolete.
The famous analyst Andrea M. Antonopoulos reacted on Twitter and explained that the Bitcoin whitepaper written by Satoshi foresaw this type of event :
„Bitcoin works exactly as Satoshi describes it on page 8 of the Whitepaper, where they calculate the probability of a reorganisation after 1 block, 2 blocks, etc. It’s almost as if it was part of Satoshi’s vision“.
Thus, the rumours spread by several media were well-founded.