Thought Experiment

Double-Spending Problem:

This new form of distributed data management resolved the double-spending problem over the Internet. The way the Internet is designed today, one can spend the same value issued as a digital file multiple times, because digital information can be copied, and copies of that same digital file can be sent from one computer to multiple other computers at the same time.

The Bitcoin protocol has a clever way to make copying digital money difficult. It groups transactions into batches called "blocks" and locks each block with a special code called a "hash." This hash works like a unique fingerprint for the block. Each block also has a special number called a "nonce" and includes the hash of the previous block, connecting them together in a chain. This chain of blocks, or "blockchain," ensures that every block is linked back to the very first one. This system makes sure all the blocks are secure and stops hackers or bad users from spending the same money twice.