Clear DefinitionsConfirmation
1 min read
Pronunciation
[kon-fer-mey-shuhn]
Analogy
Think of a confirmation as a layer of concrete poured on top of your transaction. One layer provides some security, but with each additional layer (confirmation), it becomes exponentially harder for anyone to dig down and alter your transaction.
Definition
The process by which blockchain transactions are verified and added to blocks, becoming increasingly secure and irreversible as more subsequent blocks are added. Each new block built on top of the one containing a transaction counts as an additional confirmation.
Key Points Intro
Confirmations represent increasing levels of transaction security and finality.
Key Points
Each new block added after the transaction's block counts as one confirmation.
More confirmations mean greater security against double-spending or reorganizations.
Different blockchains require different numbers of confirmations for practical finality.
High-value transactions typically wait for more confirmations than everyday purchases.
Example
When you deposit Bitcoin to an exchange, the platform might require 3 confirmations before crediting your account. This means waiting until 3 new blocks have been mined after the block containing your transaction, typically taking about 30 minutes on the Bitcoin network.
Technical Deep Dive
Confirmations provide probabilistic finality in blockchain systems. With each additional confirmation, the computational resources required to reverse a transaction increase exponentially because an attacker would need to rebuild the entire chain from that block forward with greater speed than the honest network. For Bitcoin, Satoshi Nakamoto's whitepaper calculated that after 6 confirmations, the probability of a transaction being reversed by an attacker with 10% of network hashpower falls to 0.0002%. Different blockchains have different block times and security models, leading to varying confirmation requirements—Bitcoin exchanges typically require 3-6 confirmations (30-60 minutes), while Ethereum services might accept finality after 12-50 confirmations (~3-12 minutes).
Security Warning
For high-value transactions, consider waiting for additional confirmations beyond the minimum suggested by services, especially during periods of blockchain network volatility or suspected attacks.
Caveat
While more confirmations provide greater security, there's always a theoretical possibility of transaction reversal, especially if major network disruptions or attacks occur. Absolute, mathematical finality is only achieved in certain blockchain designs that use different consensus mechanisms.
Confirmation - Related Articles
15 min read
The Rulebook for RWAs: Unpacking Regulation, Compliance, and Legal Structures
⚠️ Legal DisclaimerThis article is for informational purposes only and does not constitute legal advice. Regulatory requirements vary by jurisdiction and change frequently....
Read