Race attack

A race attackA race attack, also known as a double-spending attack, is a type of attack on a blockchain network where an attacker attempts to spend the... More, also known as a double-spending attack, is a type of attack on a blockchainThe blockchain is a digital ledger that records transactions in a secure and decentralized manner. Think of it like a shared spreadsheet that is constantly... More network where an attacker attempts to spend the same cryptocurrencyCryptocurrency is a digital or virtual currency that uses cryptography for security and operates independently of a central bank. Cryptocurrencies use decentralized technology called blockchain... More asset twice. The attack involves the attacker sending two transactions to the network simultaneously, each attempting to spend the same funds.

The attacker hopes that one of the transactions will be accepted by the network, while the other will be rejected. If successful, the attacker can effectively spend the same asset twice, which can lead to losses for the victim of the attack.

One example of a race attack occurred in 2016, when an attacker exploited a vulnerability in the EthereumEthereum is a type of cryptocurrency that is similar to Bitcoin, but with some important differences. One of the key differences is that Ethereum is... More network to steal millions of dollars worth of cryptocurrency from the DAO (Decentralized Autonomous Organization) project. The attacker was able to send multiple transactions simultaneously, effectively tricking the network into thinking that the funds were not being spent twice.

Another example of a race attack occurred in 2018, when an attacker exploited a vulnerability in the BitcoinBitcoin is like a digital treasure that you can use to buy things online. It's like having a secret code that only you know, and... More Gold network to steal millions of dollars worth of cryptocurrency from various exchanges. The attacker was able to send multiple transactions simultaneously, which caused the network to accept one of the transactions while rejecting the others, effectively allowing the attacker to double-spend their assets.