How Do Different Cryptocurrencies Set Their Default Confirmation Thresholds?
The default confirmation threshold is typically determined by the core developers and community consensus, often based on the average block time and the perceived security risk. For example, Bitcoin's 6 confirmations are often considered standard due to its 10-minute block time, resulting in about one hour of wait time.
Faster block times may require more confirmations to achieve a similar level of security against reversal.
Glossar
Confirmation
Attestation ⎊ The term "confirmation" within cryptocurrency, options trading, and financial derivatives signifies a process validating a transaction or event, establishing its legitimacy and finality.
Block Time
Epoch ⎊ Within cryptocurrency and decentralized finance, epoch refers to a discrete time interval during which specific operations or consensus mechanisms are executed.
Confirmation Threshold
Threshold ⎊ In cryptocurrency derivatives and options trading, the confirmation threshold represents a pre-defined level of certainty required before executing a trade or adjusting a position.