Understanding Confirmations and Blockchain Immutability
Blockchain records all transactions between nodes on the network in a public ledger. Then, miners verify blocks of transactions before adding them to a chain of existing blocks. This process leads to the development of a continuous chain, called the blockchain. Whether a blockchain is immutable depends upon the number of confirmations of transactions on the block.
Miners must verify transactions for them to be completed. Confirmations refer to the creation of the block and any block trailed by one to six blocks is not completely irreversible. Transactions that are trailed by more than six blocks is completely irreversible and they reach this state in anywhere from 10 minutes to 10 hours. The speed of verification depends upon the number of pending transactions on the mempool.
A block is a list of records continuously added to the blockhain. The block features a hash of other blocks, a timestamp, and transaction data. When miners create blocks featuring validated transactions, the blocks are added to the blockchain.
Finally, a bitcoin wallet reflects a wallet balance and the currency is stored on the blockchain. The term “public key” refers to the record of all transactions. The public key includes a private key that is specifically used for the transaction. Once a transaction is performed, it must be signed with a digital signature by both addresses. After being published on the network, nodes check the transaction to verify its existence. The transaction is then validated and added to the block, to be mined into the ledger.