How to avoid Double Spends when buying IOTA

If you purchase IOTA Tokens with Euro on omoku and you have entered an unsafe IOTA address for withdrawal, omoku will automatically block the transaction and let you know that you must enter a new IOTA address for secure withdrawal. Buying IOTA in 2020 - directly and securely from your bank account to your IOTA wallet.

If you are interested in the details, read more below about the issue, how the omoku solution works and how the problem can be solved in the future.

Double Spends are annoying - and dangerous!

Trinity The introduction of the Trinity Wallet by the IOTA Foundation has mitigated the problem of double spending. Nevertheless, double spends can still occur in the following scenario:

  1. You generate a new IOTA address for receiving IOTA tokens in the wallet.
  2. At least 1i (1 IOTA) is sent from your wallet to another IOTA address. A new IOTA address is automatically generated in the Trinity wallet.
  3. You receive a payment to the IOTA address generated in the first step.

This IOTA address generated in the first step is insecure. In this case you risk losing the amount of money sent to the insecure IOTA address. Technical details are explained in this article of the IOTA Foundation. For this reason, even if you buy IOTA on omoku, you must always have a ‘current, valid IOTA address’ and change it if necessary.


What if I forgot to change the IOTA address?

Double Spending Scenarios Fortunately on omoku it is impossible to send a transaction to an insecure IOTA address. If you buy IOTA tokens on omoku, it usually looks like the following (Scenario A), using the example of a SEPA transfer:

  1. You make a SEPA transfer to our bank account according to the payment details of your connection
  2. On receipt of payment the received amount is converted into IOTA
  3. The payout in IOTA tokens is made to your secure IOTA address

The procedure for the IOTA purchase in the Double Spending Case (Scenario B) is as follows:

  1. You make a transfer to our bank account according to the payment details of your connection
  2. On receipt of payment the received amount is converted into IOTA
  3. The system detects a double spend at the time of the payout. The payout is not initiated. Instead you will receive an email notification asking you to change the IOTA address in your order to allow the withdrawal to your IOTA wallet.
  4. The payout in IOTA tokens is made to your secure IOTA address

These two scenarios work the same way with all other payment methods on Omoku.

How does it work? Omoku uses the official solution with the IOTA Hub provided by the IOTA Foundation, which automatically prevents Double Spending.


Changing the IOTA address of my omoku connection is still tedious

The objection that the IOTA address of the selected connection must nevertheless be changed regularly in order to be able to carry out the purchase smoothly is justified. The Trinity Wallet offers a possibility to reduce this effort to a minimum.

Thus, multiple accounts (seeds) can be managed simultaneously in the Trinity Wallet. It is therefore advisable to use one account mainly for receiving payments, so that the IOTA address on omoku only needs to be adjusted after an outgoing IOTA transaction has been carried out on this account. New Trinity account](/assets/img/iota-trinity-wallet-new-account.png)

A final solution will be reusable IOTA addresses, whose implementation by the IOTA Foundation is expected in 2020. Reusable IOTA addresses can be used safely even after IOTA tokens have been sent. This means that it is no longer necessary to adjust the IOTA address in the connection between bank account and IOTA wallet.

According to the official roadmap IOTA addresses are planned for 2020. For all users who continue to use ‘normal, non-reusable IOTA addresses’, we will of course maintain our current approach to safely avoid double spending for each user of omoku.

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