The cryptocurrency Bitcoin has not been without its problems. There have been numerous hacks leading to the loss of millions of dollars, and Bitcoin mining tool Epic Scale became embroiled in a crapware scandal with uTorrent. The latest problem to hit the digital currency is a double-spending bug.
As the name suggests, this essentially makes it possible to spend the same Bitcoins twice, and it stems from a problem with a planned upgrade. An issue with some Bitcoin miners means that tests that usually prevent double-spending are not correctly performed. The problem was discovered on 4 July as many American were busy celebrating Independence Day.
Double-spending is supposed to be thwarted by a safety mechanism which checks the block chain (or transaction database) to check whether any given Bitcoins have been spent or not. Some Bitcoin miners are now generating invalid blocks, making it impossible to guarantee that currency can’t be spent more than once. The Bitcoin Foundation assures users that all transactions confirmed by 15:00 on 4 July are safe.
An announcement on the Bitcoin website explains:
Despite adoption by a number of big names - including Microsoft - many people remain skeptical of the digital currency. But there are others who believe cryptocurrencies are the future of online, and real world, transactions.
With the economy failing in Greece as the country teetering on the verge of crashing out of the EU, some Greeks have converted their money into Bitcoin in an attempt to minimize the risk of devaluation.
At the moment there is no news that the problem has been exploited by anyone, but unless the vulnerability is addressed, it's only a matter of time before this happens.