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.