What is a 'Confirmed' Transaction in Cryptocurrency?
Crypto is unique because of several salient features. Some of them include censorship resistance and immutability due to the network's reliance on a community of distributed miners or validators. These players are critical, powering the network every other minute, ensuring continuity.
This is why, unlike legacy value transfer systems, analysts say blockchain-powered solutions promote financial inclusions. Users, at any point, are in control of their funds using a network-specific generated public key.
At the same time, the immutability of transactions helps a big deal.
Immutability is tied to miners who ensure all transactions are valid.
A 'confirmed' transaction, in this case, is as it is because miners/validators have approved them to be valid and therefore included in a block.
Since they have been validated, all confirmed transactions are highly unlikely to be changed thanks to the immutability characteristic of crypto transactions. This prevents funds from being double-spent.
Typically, a single confirmation of a transaction—once included in a block—can guarantee security. However, it is highly recommended that a transaction be confirmed more than once, especially for more considerable sums.
For each confirmation, it is incredibly harder to reverse the transaction, preventing double-spending.
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