Post
Topic
Board Development & Technical Discussion
Re: [Theory] The optimal confirmation time
by
TierNolan
on 12/05/2015, 23:17:30 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

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.

You can reverse a block with 25BTC worth of hashing power.  That means each block costs around $6000 to reverse.  You can't actually buy enough hashing power to do the reversal, but a rule of thumb would be that you need (value of item / $6000) in confirmations but at least 6 blocks to be very secure.  For a "fighter jet" at $20 million, you would need 3-4 thousand blocks so that the value of the hashes securing the transaction was worth more than the transaction.