Understand Bitcoin “Confirmations”: A guide for Ethereum
As cryptocurrency enthusiasts, they probably came across the term “confirmations” when they receive bitcoins or interact with online services that support digital currencies. But what exactly do these confirmations mean? In this article we will deal with the world of Bitcoin transactions and explain why most websites require several confirmations before a purchase continues.
What are Bitcoin confirmations?
A Bitcoin transaction is verified by a network of computers referred to as nodes that work together to create a public general book called Blockchain. Each knot in the network checks the previous transaction block using complex algorithms and cryptographic techniques. When a new transaction is created, it will be sent to the network where nodes check their validity.
To confirm that the transaction has been accepted by the network, nodes have to check some things:
- Chain validation : Does the transaction of the expected event chain (i.e. the sender sent bitcoins to the right address and at the right time)?
- Network agreement : Are all nodes in the network agree that the transaction is valid?
- Block creation : Is the block already available in the blockchain with this transaction?
What are the requirements for confirmation?
The number of confirmations required can vary depending on the website or service you use. Here is a general collapse:
* Minimal confirmation threshold : Some websites may only need 1-2 confirmations (i.e. only one block is created). This means that the transaction is essentially “verified” in real time.
* Standard confirmation threshold : Most online services, including stock exchanges and marketplaces, usually require around 6 confirmations. This enables a more stable and reliable system to prevent spam or malicious activities.
* Maximum confirmation threshold
: Some websites may require up to 10-20 confirmations (or more) in extreme cases.
Why do websites need several confirmations?
There are several reasons why websites may require several confirmations:
- Prevent spam : If only one block has been created, it is easy for malicious actors to create fake transactions and use the system.
- Ensure the network stability : Further confirmations help to prevent networks and make sure that transactions are processed in a fair and predictable manner.
- Check the legitimacy
: Several confirmations offer an additional security level to check whether the transaction is legitimate and not part of a spam or malicious activities.
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In summary, Bitcoin “Confirmations” refer to the process with which the node on the blockchain checked the validity of transactions before they are added to the main register. The number of confirmations required can vary depending on the website or service you use. However, most online services require around 6 confirmations to ensure a safe and reliable system.
If you understand how confirmations work, you are better equipped to navigate in the world of Bitcoin transactions and make sound decisions about which websites and services should be used.
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