Crypto Confirmations - Part 2

Introduction

Building on the knowledge of Ethereum gas, this guide now takes you through the concept of blockchain confirmations. Understanding these confirmations can help increase your confidence in any given blockchain transaction.

• Soul4Space Tip: Just like a car journey takes a certain amount of time to go from A to B, so does a blockchain transaction. These confirmations are critical for the security and unchangeable of blockchain transactions.

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Section 1: Understanding Blockchain Confirmations

1. Blockchain confirmations are important to understand as they help determine the confidence level in any given blockchain transaction.

2. Once a crypto transaction is broadcasted to the blockchain, it initially has zero confirmations.

• Expert Tip: A transaction with zero confirmations is also referred to as an "unconfirmed transaction". Until it is included in a block, there's a chance that it might not be processed.

Section 2: How Confirmations Work

1. Once a transaction has been added to a block, it is sent for confirmation.

2. This means that the transaction has been given a permanent place on the blockchain and it becomes visible to everyone.

3. The number of confirmations is the number of blocks that have been added to the blockchain after the transaction's confirmation.

• Insight: The number of confirmations essentially represents the number of times that the network has validated the transaction since it was included in a block.

Section 3: The Importance of Multiple Confirmations

1. The more confirmations a transaction has, the harder it is to reverse.

2. Most exchanges require a minimum of three confirmations.

3. The larger the transaction, the more confirmations are recommended.

• Expert Tip: For transactions of over $1 million, for example, people may wait for up to 60 confirmations. This is to ensure the transaction is irreversible.

Conclusion:

Blockchain confirmations are a fundamental security feature of blockchain technology. They create a safe and unchangeable transaction record, building the future of digital finance. The more confirmations a transaction has, the more secure it is.

• Soul4Space Tip: Stay tuned for "Part 3 where we delve into transactional insights with MetaMask".