[Theory] The optimal confirmation time - page 2.

Jakesy

member

Activity: 82

Merit: 10

A ‘confirmation’ is when a transaction exists in a block. Each subsequent block further confirms that transaction. 6 confirmations means that the transaction exists in a mined block and 5 other blocks were found thereafter. Remember, each block references the previous which makes this chain stronger. It’s mathematically sound to allow for

0 confirmation purchases under $20,
1 confirmation <$100,
2 confirmations for a nice TV,
3 confirmations for a vacation package,
4 confirmations for a car,
5 confirmations for a house, and
6 confirmations for a fighter jet.

A double spender would have to computationally create new blocks to create the longest chain – it would be more expensive to try to double spend this way.

A ‘confirmed transaction’ is one in which the ENTIRE network has signed off on by including it in a block. 0 confirmations just means the transaction has been broadcast and miners should include it while trying to find the next block.

monsterer

legendary

Activity: 1008

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Quote from: virtualx on May 12, 2015, 04:03:08 AM

6 confirmations is considered a standard amount of time required for any Bitcoin-like crypto currency to ensure a transaction will not be reversed. The time to generate a Block will not change without changing the protocol, so one would still require an hour to generate those 6 confirmations. The confirmation time is fine. There are alts with shorter confirmation time but at the cost of security.

I'm thinking far outside the box here - pure theory, disregarding existing blockchain designs. Theoretically speaking, a confirmed transaction should be one that >half the network has 'signed off' on?

virtualx

hero member

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Merit: 508

LOTEO

Quote from: monsterer on May 12, 2015, 03:24:52 AM

Just thinking out loud about the ideal blockchain here.

Is the ideal confirmation time for a transaction the time it takes to propagate to >50% of the network?

You can define 'the network' as hashing power, stake, or some other comparable metric.