Confirmation in cryptocurrency refers to the process of validating a transaction on a blockchain network. Once a transaction is initiated, it needs to be confirmed by the network to ensure its validity and prevent double spending.
When a transaction is broadcasted to the network, it enters a pool of unconfirmed transactions known as the mempool. Miners then compete to include these transactions in a new block by solving complex mathematical puzzles through a process called mining.
Once a miner successfully mines a block and includes the transaction in it, the transaction is considered confirmed. The more confirmations a transaction has, the harder it becomes to reverse it, providing a higher level of security against fraudulent activities.
Confirmations serve as a way to create trust in the decentralized nature of cryptocurrency networks by ensuring that each transaction is verified by multiple participants before being added to the blockchain.
