Block Confirmation
By CoinGecko | Updated on Mar 03, 2020
When a new block of information has been verified for addition onto the blockchain, it has one confirmation. Each additional blocks added onto the blockchain gives the referenced block another additional confirmation.
The further back a block is on the blockchain, the more costly it becomes to reverse it (through malicious means). Block confirmation is typically used by crypto exchanges to consider a cryptocurrency transaction final to protect themselves against bad actors who aim to reverse transactions after depositing (known as double spending).
Related Terms
Gwei
The monetary domination of gas, involving Ether
Decryption
The process of decrypting data that was previously encrypted (made unreable) back to a readable form.
Rug Pull
Sudden removal of liquidity which typically leads to asset prices crashing from the lack of liquidity to absorb buy/sells.
Derivatives Market
A market for derivatives which are instruments such as futures or options whose value is derived from an underlying asset.
Hungry for more knowledge?
Back to Glossary or Subscribe to our newsletter.