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Crypto Terms:  Letter C

What is Confirmation Time?

Meaning:
Confirmation Time - the amount of time passed from the second a transaction is sent to the second it’s recorded in the blockchain network.
easy
2 minutes

Let's find out Confirmation Time meaning, definition in crypto, what is Confirmation Time, and all other detailed facts.

Confirmation time is the amount of time it takes for a transaction to be sent to the blockchain and confirmed

The process has a few steps. A miner includes a transaction to a block while the other network nodes validate the block. This means that the block has one confirmation. However, having only one confirmation is not the most optimal option. The general rule of thumb is to wait for a few more confirmations to guarantee that the transaction is secure. Every new block added on top will be considered another confirmation.

Depending on the blockchain network, the number of confirmations is different. Bitcoin recommends 6 confirmations for successful transactions. On the other hand, Ethereum requires at least 7 confirmations, however, participants usually wait for a higher number than that to ensure the transaction is irreversible. 

Some blockchains offer to speed up the confirmation process for a higher transaction fee. This fee serves as an incentive for miners to do that specific transaction first. 

It’s possible to use confirmation time as a metric when calculating the average speed of a blockchain network. Although, it’s not as accurate due to fluctuations in demand and other individual circumstances. A better alternative to determine the speed of a blockchain network is through the average confirmation time in relation to the recent blocks and the current state.

portfolio based on diverse methods, confluence might occur. Usually, investors do that when they want to invest in numerous assets. Typically, this results in portfolio <strong><a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-diversification/">diversification. <\/strong><\/p>\n<p>Though keep in mind that confluence and diversification differ. Confluence is about the utilization of many strategies in one portfolio. Diversification, on the other hand, is about a portfolio with various asset types.<\/p>\n<p>Confluence in trading and <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-technical-analysis-trend-analysis-ta/">technical analysis<\/strong><\/a> can be defined as the creation of a trading plan. Such a plan incorporates many trading strategies or technical analysis indicators. Additionally, confluence can refer to the use of various trading signals in tandem. This assists while checking the authenticity of a possible buy or sell signal.<\/p>\n<p>Consider the case in which a trader identifies <strong>a possible reversal price zone based on resistance and support levels. <\/strong>However, before opening a position, the trader also examines the position of <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-moving-average-ma/">moving averages<\/strong><\/a>. This way the trader determines if any of them point to the same reversal zone. Aside from that, he\/she also applies the <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-fibonacci-retracement-level/">Fibonacci Retracement approach<\/strong><\/a>. This helps to confirm the accuracy of the analysis even more. Overall, the trader can use as many trading signals and TA tools as he\/she wants.<\/p>\n<p>Thus, we can argue that the utilization of many sources of data and trading signals can <strong>validate a market trend or a price reversal level.<\/strong> As a result, a trader is more certain if the position should be opened or closed. However, the trader might also decide to simply wait for a better opportunity to invest.<\/p>","definition":"a combination of technical indicators, trading signals, and investment methods that are incorporated to create a more trustworthy investment strategy.","status":"published","meta_title":"What is Confluence? Definition & Meaning | Crypto Wiki","meta_description":"Confluence meaning: Confluence - a combination of technical indicators, trading signals, and investment methods that are incorporated to create a more trustworthy investment strategy.","meta_keywords":null}" :prev-section="{"id":191,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Blockchain","level":"medium","author_id":1,"created_at":"2023-06-19T06:58:59.000000Z","updated_at":"2024-01-07T08:20:00.000000Z","slug":"what-is-confirmation","title":"What is Confirmation?","section":"C","keyword":"Confirmation","content":"<p><strong>Confirmation is a feature that certifies or proves the truth of something.<\/strong> For example, confirming that your order has arrived. Besides, this is the last proof.<\/p>\n<p>Looking from the perspective of <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-cryptocurrency/">cryptocurrencies, confirmation is defined as the number of <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-block/">blocks that have gone through after the transaction was uploaded to a coin's blockchain. The security is determined by the number of confirmations.<\/p>\n<p>An <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-zero-confirmation-unconfirmed-transaction/">unconfirmed transaction<\/strong><\/a> is the one that is <strong>waiting to be added to the blockchain<\/strong> by miners. Following the initial block, each subsequent block is added, leading to one confirmation. This implies that if one confirmation takes ten minutes, six confirmations might take an <strong>hour<\/strong>, and so forth.<\/p>\n<p>They are gathered in the <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-mempool/">mempool, which is a backlog of all presently unconfirmed transactions.<\/p>\n<p>Speaking about smaller confirmations, these take place after the buyer and seller agree to wait for zero transactions. Larger transactions wait for more blocks.<\/p>\n<p>When an unconfirmed transaction makes it into a newly mined block, it obtains a confirmation. Following that, <strong>each new block uploaded to the chain serves as an extra confirmation<\/strong> for the transaction. Thus, if a transaction was verified in block 348202 and the current <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-block-height/">block height<\/strong><\/a> is 348207, it has six confirmations.<\/p>\n<p>Each exchange and retailer must determine the number of confirmations required for each currency. The number of confirmations that have to be <strong>100%<\/strong> secure grows with time.<\/p>\n<p>The amount of confirmations is significant for security purposes. If a hacker wishes to target the blockchain by feeding it fake transaction information, they must breach the security of each individual block in exact sequence. <strong>Beginning with the most recent one in the chain.<\/strong><\/p>\n<p>The more blocks mined since a certain transaction occurred, the more difficult it is for a hacker to break through all of them and reverse that transaction.<\/p>\n<p>For example, with <a href=https://www.bitdegree.org/"//crypto//buy-bitcoin-btc/">Bitcoin, a new block is added every 10 minutes.<\/strong> Therefore, there will be one confirmation every 10 minutes. Meaning that it will begin after an unconfirmed transaction is added.<\/p>\n<p>Most crypto companies that handle customer transactions, such as <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-wallet/">wallets and <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-exchange/">exchanges, need a minimum of three confirmations before acknowledging a transaction as genuinely <strong>legitimate and permanent<\/strong>.<\/p>","definition":"When a cryptocurrency transaction is included in a block on the blockchain, it is regarded as confirmed.","status":"published","meta_title":"What is Confirmation? Definition & Meaning | Crypto Wiki","meta_description":"Confirmation meaning: Confirmation - When a cryptocurrency transaction is included in a block on the blockchain, it is regarded as confirmed.","meta_keywords":null}" :model="{"id":962,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Time","level":"easy","author_id":1,"created_at":"2023-06-19T06:59:01.000000Z","updated_at":"2024-01-07T08:20:06.000000Z","slug":"what-is-confirmation-time","title":"What is Confirmation Time?","section":"C","keyword":"Confirmation Time","content":"<p><strong>Confirmation<\/strong> <strong>time<\/strong> is the <strong>amount of time it takes for a transaction to be sent to the blockchain and confirmed<\/strong>.&nbsp;<\/p>\n<p>The process has a few steps. A <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-miner/">miner includes a transaction to a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-block/">block while the other network <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-node/">nodes validate the block. This means that the block has one <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-confirmation/">confirmation. However, having only one confirmation is not the most optimal option. The general rule of thumb is to <strong>wait for a few more confirmations to guarantee that the transaction is secure<\/strong>. Every new block added on top will be considered another confirmation.<\/p>\n<p>Depending on the blockchain network, the number of confirmations is different. <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-bitcoin/">Bitcoin recommends 6 confirmations for successful transactions. On the other hand, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-ethereum-eth/">Ethereum requires at least 7 confirmations, however, participants usually wait for a higher number than that to ensure the transaction is irreversible.&nbsp;<\/p>\n<p>Some blockchains offer to <strong>speed up the confirmation process<\/strong> for a higher <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-transaction-fee/">transaction fee<\/strong><\/a>. This fee serves as an incentive for miners to do that specific transaction first.&nbsp;<\/p>\n<p>It&rsquo;s possible to use confirmation time as a <strong>metric<\/strong> when calculating the average speed of a blockchain network. Although, it&rsquo;s not as accurate due to fluctuations in demand and other individual circumstances. A better alternative to determine the speed of a blockchain network is through the average confirmation time in relation to the recent blocks and the current state.<\/p>","definition":"the amount of time passed from the second a transaction is sent to the second it\u2019s recorded in the blockchain network.","status":"published","meta_title":"What is Confirmation Time? Definition & Meaning | Crypto Wiki","meta_description":"Confirmation Time meaning: Confirmation Time - the amount of time passed from the second a transaction is sent to the second it\u2019s recorded in the blockchain network.","meta_keywords":null,"author":{"id":1,"user_id":1,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2023-05-11T07:18:20.000000Z","title":"Editor-In-Chief","slug":"aaron-s-editor-in-chief","description":"<p>Having completed a Master&rsquo;s degree on Economics, Politics &amp; Culture for the East Asia region, Aaron has written scientific papers with a comparative analysis of the differences between US&rsquo; Western and Japan&rsquo;s Collective forms of capitalism, 1945-2020.<\/p>\n<p>With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He&rsquo;s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.<\/p>\n<p>Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain &amp; Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.<\/p>\n<p>Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.<\/p>","user":{"id":1,"first_name":"Aaron","last_name":"S.","email":"aaron@bitdegree.org","email_sanitized":"aaron@bitdegree.org","email_verified_at":"2023-12-01T09:40:20.000000Z","must_verify_email":false,"is_registered_with_wallet":false,"status":"active","country":"LT","last_connected_ip":"88.119.132.125","image_id":2641,"referral_token":"05TMu2NysXOCn525","referred_by":null,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2024-01-09T15:22:21.000000Z","full_name":"Aaron S."}}}" :chapter-list="[{"id":1,"title":"Blockchain","slug":"blockchain","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-blockchain.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/blockchain-101.jpg","rating":100,"sections":[{"chapter_id":1,"order":1,"slug":"what-is-blockchain","title":"What is the Blockchain?","status":"published","modified_content":null},{"chapter_id":1,"order":2,"slug":"decentralized-blockchain","title":"Anonymous & Decentralized Blockchains: The Cornerstone of Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":3,"slug":"blockchain-transaction","title":"What is a Blockchain Transaction in Crypto?","status":"published","modified_content":null},{"chapter_id":1,"order":4,"slug":"crypto-fees","title":"The Different Types of Crypto Fees Explained","status":"published","modified_content":null},{"chapter_id":1,"order":5,"slug":"what-is-bridging-in-crypto","title":"The Key Notion Behind the Concept of Bridging in Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":6,"slug":"types-of-blockchains","title":"Different Types of Blockchains: What to Look Out For?","status":"published","modified_content":null}]},{"id":2,"title":"Cryptocurrencies","slug":"cryptocurrencies","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-cryptocurrencies.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/cryptocurrencies-101.jpg","rating":100,"sections":[{"chapter_id":2,"order":1,"slug":"what-is-a-cryptocurrency","title":"What is a Cryptocurrency?","status":"published","modified_content":null},{"chapter_id":2,"order":2,"slug":"how-does-cryptocurrency-work","title":"How Does Cryptocurrency Work?","status":"published","modified_content":null},{"chapter_id":2,"order":3,"slug":"is-cryptocurrency-a-good-investment","title":"Is Cryptocurrency a Good Investment? 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Wallet?","status":"published","modified_content":null},{"chapter_id":4,"order":2,"slug":"hot-wallet-vs-cold-wallet","title":"Hot Wallet VS Cold Wallet: Which One to Pick?","status":"published","modified_content":null},{"chapter_id":4,"order":3,"slug":"non-custodial-wallet","title":"What are Non-Custodial Crypto Wallets?","status":"published","modified_content":null},{"chapter_id":4,"order":4,"slug":"what-is-metamask","title":"Metamask: The Leading Non-Custodial Wallet","status":"published","modified_content":null},{"chapter_id":4,"order":37,"slug":"how-safe-is-cryptocurrency","title":"The Key Crypto Wallet Safety Practices: How Safe Can Crypto Be?","status":"published","modified_content":null}]},{"id":5,"title":"NFTs","slug":"nfts","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-nfts.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/nfts-101.jpg","rating":100,"sections":[{"chapter_id":5,"order":2,"slug":"how-to-trade-nfts","title":"NFT Trading: 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Mining?","status":"published","modified_content":null},{"chapter_id":9,"order":3,"slug":"what-is-staking-crypto","title":"An Advanced Look into What is Staking Crypto","status":"published","modified_content":null},{"chapter_id":9,"order":4,"slug":"what-is-proof-of-stake-vs-proof-of-work","title":"Proof-of-Work VS Proof-of-Stake: The Differences That Matter","status":"published","modified_content":null},{"chapter_id":9,"order":5,"slug":"what-is-crypto-mining-rig","title":"Crypto Mining Rig: What It is and How to Build One?","status":"published","modified_content":null}]},{"id":10,"title":"Crypto Terms","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/crypto-101-glossary.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-glossary-101.jpg","rating":100,"sections":["A","B","C","D","E","F","G","H","I","J","K","L","M","N","O","P","Q","R","S","T","U","V","W","X","Y","Z"]}]" current-chapter="C" current-section="what-is-confirmation-time">