https://bitcointalksearch.org/topic/suggestion-introduce-penalty-for-attempted-double-spend-3168
https://bitcointalksearch.org/topic/m.49447
https://bitcointalk.org/index.php?topic=208167.20
https://bitcointalksearch.org/topic/penalizing-double-spends-54746
The TX in the previous block becomes invalid!
Transactions that only changed the transaction fee must be excluded.
There are just two possible outcomes:
1) Merchant receives their money. Buyer payed merchant.
2) Merchant receives nothing. Miner receives payment. Buyer payed miner.
There is no penalty for the buyer but also no incentive. I think that should be enough.
This change makes single confirmation TXs less secure than now but removes the incentive to double spend. With the current system I don't see a use case for single confirmation TXs other than preventing double spends anyway. TXs with two or more confirmations are as secure as today.
A problem is that it is necessary to make 100% sure never to broadcast modified TXs (with the exception of increased fees).
Even Gavin Andresen played with the idea:
Is there any altcoin out there that applies a penalty in case of double-spend attempts? Do you know of any research papers about the topic?