What is Transaction Confirmation in Bitcoin (if the confirmation time for Bitcoin transactions is set too short)

What is transaction confirmation in Bitcoin? According to Bitcoin core developer Andreas Antonopoulos, transaction confirmation is the process of transferring data to another address. This method is called “signing”. When a user interacts with the service, they receive a payment to the sender instead of charging the recipient fees or waiting for a longer time (i.e., 5 minutes). Once this payment is accepted, it can access these payments while continuing to process other transactions and ensure network security.

Transaction confirmation is achieved through encryption algorithms – the node manager maintained by the Bitcoin Core team uses the signing private key and block hash function. This allows anyone to create a new wallet to verify transactions.

If the confirmation time for Bitcoin transactions is set too short

There are massive transactions on the Bitcoin network, and setting the confirmation time too short may cause trouble for exchanges. According to Paolo Ardoino, CTO of Bitfinex, in a recent podcast interview, “When it comes to a block, the confirmation speed may be slower than we imagine.” Previously, Bitfinex officially agreed to suspend Bitcoin and Ethereum futures contract trading services on its platform.