What is bitcoin network confirmation

Transaction confirmation

Enjoyed the article? Share:

Bitcoin transaction confirmation is needed to prevent double-spending of the same money. One of the main advantages of bitcoin is that it avoids the problem of double-spending, i.e. the risk that a digital currency token may be copied and spent more than once. In spite of having no central authority to verify that its tokens are not being duplicated, bitcoin successfully avoids double-spending through a system of decentralized transaction confirmation, based on the consensus of its users. Bitcoin transaction time is always changing and it depends on the miner’s fee.

Contents

How to confirm bitcoin transaction? [ edit ]

A transaction is a transfer of value between Bitcoin wallets that gets included in the block chain [1] . Bitcoin transactions are not immediate. When a user wishes to send bitcoins, information is broadcast from her wallet to the (users in the) network, who verify that she has enough coins, and that they have never been spent before. Once validated, miners will include this transaction – along with others – in a new block in the blockchain. This is called a transaction confirmation. The transaction is now said to be «unconfirmed bitcoin transaction».

Each time a new block is added to the chain (every ten minutes), the transaction is said to be confirmed again. As a consensus, many users wait for a transaction to be confirmed six times (after roughly sixty minutes) before accepting it as payment, to avoid double-spending. Users will usually show a transaction as «n/unconfirmed» until it is six blocks deep.

Bitcoin Confirmation Time [ edit ]

To answer the question «How Long Does It Take To Transfer Bitcoin» it needs to understand that bitcoin transaction confirmation time depends on many factors. The deeper a transaction is buried, the harder it will be to manipulate. Although 0/unconfirmed transactions could be reversed via Finney attack, race attack, or 51% attack, small amounts of money will not be worth the trouble. Larger sums are worth protecting under more bitcoin confirmations. The number six is just an arbitrary limit, beyond which the feasibility of an attacker being able to amass more than 10% of the network’s hashrate for purposes of a transaction falsification becomes negligible (a risk lower than 0.1%).

Having understood how transactions occur, you should find out what affects the speed of processing and verification of information. To speed up the process, you need to know that it can slow down. Usually at the final time is affected by:

• network utilization;
• sharp jumps in the course;
• low commission.

The influence of the first factor is especially noticeable. When the system needs to process many requests, users have to wait. Especially long we have to wait in the days of peak activity, which is not often, but sometimes. Of great importance is the Commission paid to miners. The bigger it is, the higher the priority will be.

How long does bitcoin take to send? The size of the transaction has an influence on bitcoin confirmation time. It also has an additional impact: sending large amounts is much faster.

How many confirmations in bitcoin needed? [ edit ]

Although six confirmations is the consensus, merchants and exchanges that accept bitcoin as payment for their products and services should set their own standard of confirmations they require before accepting payment.

Freshly-minted bitcoins can only be used after 100 confirmations, to prevent coins from orphan blocks being spent. Older bitcoin client will not use newly-earned coins until they have 120 confirmations.

Number of Bitcoin Confirmations [ edit ]

A regular bitcoin client will show the transaction as “n / unconfirmed” until its size in the chain becomes 6 blocks. Users and cryptocurrency exchanges that accept bitcoins as payment set their threshold in the number of required blocks until the payment is confirmed.

To find out how many checks are required to process the transaction and how long to wait for the receipt of funds, it is necessary to understand the features of cryptocurrency transfers. This process consists of several stages:

• addressee sends money;
• information about transactions is made in special blocks, each of which has a room and a hash (special data);
• the blocks are sent for scanning to different computers;
• if everything is done correctly, the received information replenishes various databases;
• checked blocks complete the chain;
• the money goes to the recipient.

To make a transfer, the transaction must be verified in 6 blocks. If this does not happen, cryptogenic reach the final destination. Accordingly, the speed of bitcoin confirmations depends on the time of sending Finance.

Bitcoin transaction accelerator [ edit ]

Theoretically, it is impossible to speed up the confirmation of bitcoin transactions. Because it is impossible to increase the speed of data processing on another computer. But the reality is somewhat different. Cryptocurrency holders can take advantage of several options:

• the increase in the size of the commission;
• using proven reliable wallets;
• the opening of the transaction;
• using multifunction purses that support the creation of multipurpose.

Additionally, visitors can use the alternative, involving the procurement transaction as a reserve. This option requires the creation of a private, independent from the wallet address bitcoins.

Depending on conditions the time of making the bitcoin payment can be both immediate and delayed for a few days. Therefore, in order not to be in a difficult situation, you should think in advance about all the details and decide how to speed up the process. And the most important is the size of the Commission and the reliability of the selected wallet. If miners get a good reward, the priority of data processing will increase dramatically. A high-quality payment resource is able to make a financial transaction instant.

General format of a Bitcoin transaction (inside a block) [ edit ]

Field	Description	Size
Version no	currently 1	4 bytes
Flag	If present, always 0001, and indicates the presence of witness data	optional 2 byte array
In-counter	positive integer VI = VarInt	1 — 9 bytes
list of inputs	the first input of the first transaction is also called «coinbase» (its content was ignored in earlier versions)	-many inputs
Out-counter	positive integer VI = VarInt	1 — 9 bytes
list of outputs	the outputs of the first transaction spend the mined bitcoins for the block	-many outputs
Witnesses	A list of witnesses, 1 for each input, omitted if flag above is missing	variable, see Segregated_Witness
lock_time	if non-zero and sequence numbers are Principle example of a Bitcoin transaction with 1 input and 1 output only [ edit ]

Data [ edit ]

Explanation [ edit ]

The input in this transaction imports 50 BTC from output #0 in transaction f5d8. Then the output sends 50 BTC to a Bitcoin address (expressed here in hexadecimal 4043. instead of the normal base58). When the recipient wants to spend this money, he will reference output #0 of this transaction in an input of his own transaction.

Input [ edit ]

An input is a reference to an output from a previous transaction. Multiple inputs are often listed in a transaction. All of the new transaction’s input values (that is, the total coin value of the previous outputs referenced by the new transaction’s inputs) are added up, and the total (less any transaction fee) is completely used by the outputs of the new transaction. Previous tx is a hash of a previous transaction. Index is the specific output in the referenced transaction. ScriptSig is the first half of a script (discussed in more detail later).

The script contains two components, a signature and a public key. The public key must match the hash given in the script of the redeemed output. The public key is used to verify the redeemers signature, which is the second component. More precisely, the second component is an ECDSA signature over a hash of a simplified version of the transaction. It, combined with the public key, proves the transaction was created by the real owner of the address in question. Various flags define how the transaction is simplified and can be used to create different types of payment.

Output [ edit ]

An output contains instructions for sending bitcoins. Value is the number of Satoshi (1 BTC = 100,000,000 Satoshi) that this output will be worth when claimed. ScriptPubKey is the second half of a script (discussed later). There can be more than one output, and they share the combined value of the inputs. Because each output from one transaction can only ever be referenced once by an input of a subsequent transaction, the entire combined input value needs to be sent in an output if you don’t want to lose it. If the input is worth 50 BTC but you only want to send 25 BTC, Bitcoin will create two outputs worth 25 BTC: one to the destination, and one back to you (known as «change», though you send it to yourself). Any input bitcoins not redeemed in an output is considered a transaction fee; whoever generates the block can claim it by inserting it into the coinbase transaction of that block.

Verification [ edit ]

To verify that inputs are authorized to collect the values of referenced outputs, Bitcoin uses a custom Forth-like scripting system. The input’s scriptSig and the referenced output’s scriptPubKey are evaluated (in that order), with scriptPubKey using the values left on the stack by scriptSig. The input is authorized if scriptPubKey returns true. Through the scripting system, the sender can create very complex conditions that people have to meet in order to claim the output’s value. For example, it’s possible to create an output that can be claimed by anyone without any authorization. It’s also possible to require that an input be signed by ten different keys, or be redeemable with a password instead of a key.

Types of Transaction [ edit ]

Bitcoin currently creates two different scriptSig/scriptPubKey pairs. These are described below.

It is possible to design more complex types of transactions, and link them together into cryptographically enforced agreements. These are known as Contracts.

Pay-to-PubkeyHash [ edit ]

A Bitcoin address is only a hash, so the sender can’t provide a full public key in scriptPubKey. When redeeming coins that have been sent to a Bitcoin address, the recipient provides both the signature and the public key. The script verifies that the provided public key does hash to the hash in scriptPubKey, and then it also checks the signature against the public key.

Источник

What is a confirmation from the Bitcoin network?

To move Bitcoins from the old owner to the new one, you need to receive confirmation from the network. Without this, the user will not be able to dispose of coins that are formally considered his property.

Immediately after the operation with the cryptocurrency, data about it is sent to the network to carry out the corresponding transaction. This information is to be included in the block, due to which it acquires legitimacy for all participants in the system. The procedure for attaching data about the operation to the composition of the block is called network confirmation.

This process has a protective function. This is how the system prevents the reuse of the same coins.

It is believed that with each inclusion in the block, the transaction receives one confirmation. As a rule, the legitimacy of the operation is considered proven when six or more confirmations are received on the network. The inclusion in the block is carried out during the generation of virtual coins.

How many confirmations do I need?

As mentioned above, in the classic version, an operation with Bitcoins is considered legitimate if at least six transaction confirmations are received from the miners. This value was not chosen by chance. It is based on the theory that the probability of a fraudster accumulating 10% of the network hash, the amount necessary to fake a payment, is a negligible percentage (less than 0.1). Therefore, the receipt of six confirmations is a reliable guarantee for the prevention of criminal manipulations.

At the same time, trading platforms that accept Bitcoins as payment for goods and services may, at their discretion, set the number of blocks required to confirm the payment.
How long does it take to receive confirmation?

It is impossible to answer this question unequivocally. After all, the duration of the process depends on the work of crypto miners, that is, people who are mining virtual coins. The interested person must wait for confirmation until the miner has obtained the next block.

The process of obtaining confirmation lasts from twenty minutes to several days. The duration of this option depends on a number of factors. These include network congestion, the number of unprocessed operations, hacker attacks, and more. It is not possible to predict in advance the exact amount of time needed to include a transaction in the next block. In any case, a person who intends to use cryptocurrency needs to learn patience. Although there is another way to reduce the time interval required to make a money transfer. It is enough to establish high commissions.

Источник

Bitcoin Confirmations: 5 Ways to Speed Up a Transaction

Bitcoin transaction confirmation is a process involving miners, senders, and recipients, that adds a transaction to a new block and confirms its validity. The purpose of the check is to protect users from re-spending money and attempts to make changes to the source code of the system. Below we consider what confirmation in the Bitcoin network is, how it works, and why it is necessary. Separately, we will analyze ways to accelerate transactions and their features.

What is it?

Bitcoin is a digital currency built on open-source software. A member of the Bitcoin network can check the information about any transaction and make sure that other participants confirm it.

For a better understanding of what confirmation is, we will analyze the features of a transaction in the Bitcoin network. The structure is as follows:

1. When making a payment, transaction information is recorded in a block, which is added to the blockchain. The weight of one block is no more than 1 Mb.
2. Each block has a transaction hash added to it with the size of the fee, and then there is a list of other transfers.
3. Miners use existing equipment (ASICs, GPU, leased powers) to search for a hash and form new blocks. In this way, they confirm the validity of the transaction.
4. After adding six new blocks, the confirmation is considered complete.

Bitcoin transaction diagram

Once all the steps are completed, the cryptocurrency is credited to the wallet. In other words, money is debited from the wallet of the sender and transferred to the recipient. In the absence of confirmation, the transfer may “freeze”, and eventually return to the sender.

The number of confirmations varies depending on the circumstances, amount and features of the wallet.

Let’s highlight the main options for the number of confirmations:

• 0 – the transaction is canceled;
• 1 – one confirmation in the Bitcoin network is enough to conduct an operation for up to 1000 USD;
• 3 – the number of confirmations when transferring from 1,000 to 10,000 USD;
• 6 – the standard number of blocks for Bitcoin clients relevant for transactions worth more than 10,000 USD;
• 60 – a prerequisite for transfers over 1 000 000 USD;
• 100 – upon payment of a reward for the found block;
• 120 – for crediting to the wallet.

Typically, the recipient must wait until six blocks are added. It takes about 60 minutes. The number is chosen for a reason because hacking the network will require at least 10% of the total hash rate.

Thus, confirmation on the Bitcoin network takes from 10 minutes to several hours. When choosing the optimal commission, the operation takes from 20 to 60 minutes. It is impossible to indicate the exact time of the transaction because this parameter depends on many factors, more on this below.

Why confirmation is needed

Beginners often ask about the relevance of confirmations – why they are needed, and what is the use of them. It’s a valid line of questioning because confirmation takes a lot of time. Instead of instantly transferring the funds, network participants are forced to wait for executing the transaction for 20 minutes or more.

The need for confirmation in the Bitcoin network is due to the solution of the following tasks:

1. Protection against the re-use of cryptocurrency when the BTC owner simultaneously uses coins to be sent to different users.
2. Reducing the risk of fraud and open-source hacking.
3. Creating optimal conditions for creating blocks and receiving rewards by miners.

Standard Bitcoin wallets consider a cryptocurrency transaction not confirmed until six new blocks are formed. It means that until the formation of these blocks, the recipient cannot use the coins.

How to reduce the time for confirmation in the Bitcoin network

The speed of operation in a Bitcoin network is a dynamic indicator that varies depending on many aspects. Let’s single out the main ones:

1. Network load. The block size has a limit, and the number of people wishing to conduct a transaction is growing every day. At the time of this writing, one block contains about 700 KB. As a result, a queue arises. These queues are called mempool, and appear during sharp jumps in the cryptocurrency rate and increased user activity.
2. Low commission fee. For any transfer, a commission fee is established, which is accrued to the miners’ accounts for searching the “block hash.” The higher this parameter, the faster the transaction occurs. Transactions with a minimum payment are processed secondarily. As of January 2020, the average commission fee is about 50 cents per transfer. This means that when registering a transaction, it is worth specifying the commission fee above that minimum.

Сurrent Bitcoin commission

3. The amount of the transaction. The miner receives a reward taking into account the place occupied by the transaction in the block. If the user does several consecutive transactions for small amounts, they are given a high priority in comparison with a larger transaction.

4. Hacker Attacks. Hackers have a negative impact on the cryptocurrency network. They create many small transfers that require confirmation in the Bitcoin network. For this reason, there are delays in conducting transactions.

How to speed up confirmation

Against the background of what has been said, the question arises whether it is possible to reduce the confirmation time. Experienced participants in the crypto network distinguish the following methods.

1. ANTPool. The essence of the method is to use the powers of this very service. On average, two to ten blocks are required for confirmation. The method is free but requires registration. Acceleration is possible if the blocks are formed using ANTPool.
2. ViaBTC. Unlike ANTPool, there is no need to register. Click on the link viabtc.com/tools/txaccelerator, enter the transaction ID, solve the captcha, and click on the acceleration button (as a purchase or for free). The downside is that it is difficult to achieve quick confirmation for free due to huge demand. If you managed to do this, the transaction is guaranteed to be carried out within 72 hours. It is worth considering that the service has a limitation. It does not allow you to add more than 100 operations per hour, due to the increased popularity of the option. If you have a ViaBTC mining contract, you can count on five free accelerations but because of the high cost of power, it is irrelevant.

ViaBTC interface screenshot

1. CPFP. The technique is suitable only for the recipient. You must log in to the wallet to use the service, and then go to settings. There is a mark next to the CPFP field. To accelerate the confirmation in this way, you must have access to the private keys of the Bitcoin storage. In other words, the recipient sends money to themself with a higher commission fee, which increases the speed of the transaction.
2. Double expenses. The possibility of applying the technique depends on the type of wallet because on some it is not used at all. For reliability, wait a few days and make sure that the wallet itself deletes unconfirmed transactions. When the cryptocurrency appears in the balance sheet, a new transaction is occurred. To accelerate the confirmation, it is needed to clarify the commission fee, for example, at bitinfocharts.com/en/comparison/bitcoin-transactionfees.html. Then delete the “stuck” transaction from the wallet and make a new transaction, setting a commission for it above the average.

The next step is to copy the HEX code and use it on any of the websites with accelerators.

A number of wallets themselves delete the Bitcoin transaction if it has not been confirmed within a few days. In such circumstances, you need to conduct another transaction, but with a higher commission fee. The main thing is not to use the old Bitcoin address from the first transaction.

There is also a paid method to reduce the confirmation time in the Bitcoin network. This is an accelerator at BTC.com. You need to click on the link https://pushtx.btc.com/, enter the transaction ID and click on the button Estimate Cost. If you are ready to pay, it only remains to confirm the transaction. As a rule, the price of the service is high. Therefore, a paid transaction accelerator is relevant only when transferring a large amount.

pushtx.btc.com interface screenshot

Summary

Confirmation of transactions in the Bitcoin network is a guarantee of protection against double expenses and one of the main rules of the cryptocurrency network. When buying a contract on a cloud mining service, you can become a miner yourself, participate in confirmation and receive rewards. In the future, earned coins can be transferred to other users. To avoid delays, it is recommended to immediately set a higher commission fee and transfer several payments in a row.

Источник