Confirmation

Understanding Confirmation

Confirmation is the act of providing proof or evidence to validate the truth of something. It can be likened to receiving assurance that your Uber ride will arrive on schedule or discovering that something you suspected has indeed happened.

In the realm of cryptocurrencies, confirmation pertains to the number of blocks added to a coin’s blockchain since a transaction occurred. The more confirmations a transaction has, the higher its level of security.

For smaller transactions, it may be acceptable for buyers and sellers to proceed with zero confirmations. However, for larger transactions, it is advisable to wait for more blocks to be added.

In the case of Bitcoin, three confirmations are generally considered a reasonable compromise for smaller transactions, while six confirmations are recommended for larger ones. In certain instances, for very substantial transactions, waiting for 60 confirmations may be necessary.

The required number of confirmations for each coin is determined by individual merchants and exchanges. There is no fixed number, and the necessary number of confirmations tends to increase over time to ensure maximum security.

The time needed for confirmations varies depending on the specific coin and the speed at which blocks can be mined. In the case of Bitcoin, a new block is added approximately every 10 minutes. This means that one confirmation is obtained every 10 minutes once an unconfirmed transaction is added to the blockchain.

It is important to understand that an unconfirmed transaction is one that is awaiting inclusion in the blockchain by miners. Each subsequent block added to the blockchain represents one confirmation. Therefore, if it takes 10 minutes to obtain one confirmation, it could take an hour to obtain six confirmations, and so on.