Bifalgorithm post · Bitcoin cryptocurrency · Building the Blockchain

Confirmations Competing

Confirmations Competing (Bitcoin cryptocurrency · Building the Blockchain) — "A transaction is not fully settled when it is first broadcast, because the networ…

Ideas in this flowchart

  • Bitcoin transaction settlement requires block inclusion and consensus confirmation.
  • Broadcasting a transaction does not fully settle it.
  • Settlement requires the network to include the transaction in a block and confirm that block through consensus.
  • Two blocks are discovered at nearly the same time.
  • The network continues building on one chain.
  • The other block is treated as an orphaned block.
  • Transactions missing from the accepted chain must be processed again.
  • Additional blocks make the transaction record increasingly reliable.
  • Bitcoin delays a winning miner's ability to spend its reward until many more blocks have been added.
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Confirmations Competing

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Bitcoin cryptocurrency

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"A transaction is not fully settled when it is first broadcast, because the network must include it in a block and confirm that block through consensus. If two blocks are discovered at nearly the same time, the network continues building on one chain and treats the other as an orphaned block, requiring its transactions to be processed again if they were not included in the accepted chain. Additional blocks make the record increasingly reliable, and Bitcoin delays a winning miner's ability to spend its reward until many more blocks have been added."

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