Algorithm

Cryptos:

2,117

Exchanges:

10

Marketcap:

$2,120,311,295,469

Volume 24h:

$50,109,644,881

Confirmation

What does Confirmation mean in crypto terms?

In the context of cryptocurrencies, 'confirmation' refers to the process by which transactions are validated and added to the blockchain. Confirmations provide a level of assurance that a transaction has been successfully included in the distributed ledger and is considered final.

When a transaction is initiated on a blockchain network, it enters a pool of unconfirmed transactions, also known as the mempool. Miners, who are responsible for validating and adding transactions to the blockchain, select transactions from the mempool and include them in a block. Once a transaction is included in a block, it is said to have received its first confirmation. This means that the transaction is considered valid and has been accepted by the network. Miners validate the transaction by solving complex mathematical problems and reach a consensus on its inclusion in the blockchain.

Additional blocks are subsequently added to the blockchain, with each block referencing the preceding block. As more blocks are added, the number of confirmations for a transaction increases. Each new block that is added to the blockchain containing the transaction increases its level of confirmation. The number of confirmations required for a transaction to be considered fully confirmed depends on the specific blockchain network and the level of security desired. Generally, the more confirmations a transaction has, the more secure and final it is considered.

In most cases, a transaction with multiple confirmations, such as six confirmations or more, is considered highly secure and irreversible. Confirmations provide protection against potential attacks, such as double-spending, where an individual tries to spend the same cryptocurrency multiple times. Each confirmation represents a block added to the blockchain, making it increasingly difficult to reverse or alter the transaction. Users and merchants often wait for a certain number of confirmations before considering a transaction as fully completed or accepting it as payment.

The number of required confirmations may vary depending on the level of risk tolerance or the value of the transaction. In summary, confirmation in the context of cryptocurrencies refers to the process by which transactions are validated and added to the blockchain. Each new block added to the blockchain increases the number of confirmations for a transaction, providing a higher level of security and finality. Confirmations protect against potential attacks and provide assurance to users that a transaction has been successfully included in the blockchain.

Did you find this term clearly defined?

Yes

No

Explore Other Crypto Terms

Cold Wallet

A 'cold wallet' refers to a type of cryptocurrency wallet that is designed for offline storage, keeping the private keys and digital assets secure and isolated from online threats.

Read More

Cold Storage

Cold storage is a method used to securely store cryptocurrencies offline, keeping them disconnected from the internet and inaccessible to online threats.

Read More

Coin

A Coin refers to a digital asset that acts as a form of currency within a specific blockchain or cryptocurrency network. Unlike physical currencies, coins exist solely in digital form and are designed to enable secure and decentralized transactions.

Read More

Cloud Mining

Cloud mining refers to the practice of leasing mining resources from a third-party provider to mine cryptocurrencies remotely. Instead of setting up and managing their own mining hardware, users can access mining capabilities through the internet.

Read More

Correction

In the context of financial markets, a 'correction' refers to a temporary reverse movement or adjustment in the price of an asset or market that brings it back in line with its fundamental value.

Read More

Crypto

Crypto is a term that is short for 'cryptocurrency' or 'cryptographic currency.' It refers to digital or virtual currencies that use cryptography for security and operate on decentralized networks called blockchains.

Read More

Cryptocurrency

Cryptocurrency refers to a digital or virtual form of currency that relies on cryptographic techniques for security and operates on decentralized networks called blockchains.

Read More

Consensus

Consensus, in the context of distributed systems like blockchain, refers to the collective agreement among participants on the validity and order of transactions or changes to the system's state.

Read More