DeQ:
The actual answer to your question is that a wasted spark ignition fires the plug at Top Dead Center (or whatever your ignition timing is set to) every time the piston rises near the top of the cylinder. Obviously, one of those strokes will have only exhaust gas, not combustible fuel-air mix, so that firing of the plug is "wasted".
These systems are used, for example, in Hall-effect ignition sensors, such as the one in my '85 BMW K100RS motorcycle, whose fueling system is Bosch L-Jetronic as used by BMW in the 80's, after K-Jet (CIS) and before Motronic.
If the fuel-air mixture is for some reason really rich and does not burn enough on the power stroke of the engine, unpleasant things can happen if there is an ignition event as the piston is rising on what should be the exhaust stroke.
If one converts to an aftermarket fuel system, it is possible to install also a later ignition system. For this if the distributor is not retained for ignition timing, another solution is to use a Hall Effect Sensor (HES) or some other crank position determining system.