BSV Network Is Vulnerable To Double Spending
Bitcoin Cash SV (BSV), a new token that recently emerged from the Bitcoin Cash hard fork on November 15, 2018, is currently vulnerable to double spending. According to an uploaded video on December 8, 2018, Vimeo user Reizu demonstrated that he was able to take advantage of the of the BSV network and spend two coins twice in a “0-confirmation transaction.”
User Double Spends BSV in a Video
The video on Vimeo shows a significant flaw in Bitcoin Cash’s new feature, the 0-confirmation which allows transactions to occur almost instantly. Reizu confirmed in a multi-phase test that he was able to exploit the BSV network via a double spend through the 0-confirmation feature.
Craig Wright, the self-proclaimed Bitcoin Creator, and supporter of Bitcoin Cash SV (Satoshi’s Vision) previously stated that only miners could do what Reizu demonstrated in the video. It appears that Reizu’s 11-minute video may have discovered a big problem with the network.
Reizu also mentioned the BSV double spend vulnerability in his blog on Honest.Cash. The user openly revealed that he believes that it would be possible to double spend a 0-confirmation transaction in Bitcoin although experts think that it is almost impossible to undergo this type of attack, and there is no way to double-spend without being detected.
The user then went into detail about his efforts to test the network for educational purposes, openly revealing that “I have made double-spending on several services of the BSV network, always using own accounts and own addresses (not third parties).” Video footage of the double spending was shown using POP!, a popular point-of-sale (PoS) application that can detect double spending.
BSV Network Encounters Many Challenges
Unfortunately, it’s not the first time the BSV network has experienced difficulties and challenges. Just last week the BSV Chain underwent a block reorganization which stirred a lot of controversy and drama online. Many users went to social media platforms like Reddit to post very negative comments, highlighting the strongly centralized nature of the network since a minimal number of people make critical decisions for the whole network.
Reizu also confirmed the centralized network, discovering that the transactions that were mined were often from the same nodes. The user mentioned that out of the 450 nodes, only four nodes controlled 74 percent of BSV’s hash rate.
Despite these problems, the BSV token is performing well, ranking 8th on CoinMarketCap with a market capitalization of $1.67 billion with a trading value of $95.60. It ranks two spots below Bitcoin Cash which has a market cap of $1.85 billion and is valued at $105.47.