Post
Topic
Board Development & Technical Discussion
Re: [Theory] The optimal confirmation time
by
Jakesy
on 12/05/2015, 15:32:07 UTC
A ‘confirmation’ is when a transaction exists in a block.  Each subsequent block further confirms that transaction.  6 confirmations means that the transaction exists in a mined block and 5 other blocks were found thereafter.  Remember, each block references the previous which makes this chain stronger.  It’s mathematically sound to allow for

  • 0 confirmation purchases under $20,
  • 1 confirmation <$100,
  • 2 confirmations for a nice TV,
  • 3 confirmations for a vacation package,
  • 4 confirmations for a car,
  • 5 confirmations for a house, and
  • 6 confirmations for a fighter jet.  

A double spender would have to computationally create new blocks to create the longest chain – it would be more expensive to try to double spend this way.

A ‘confirmed transaction’ is one in which the ENTIRE network has signed off on by including it in a block.  0 confirmations just means the transaction has been broadcast and miners should include it while trying to find the next block.