Why Does the Number of Required Confirmations Increase with Transaction Value? ⎊ Path

Why Does the Number of Required Confirmations Increase with Transaction Value?

The number of required confirmations increases with transaction value because the financial risk of a double-spend attack also increases. For a high-value transaction, the economic incentive for an attacker to attempt a chain re-organization is higher.

Requiring more confirmations exponentially increases the cost of a successful attack, making it economically irrational.

How Does Increasing Confirmation Requirements Mitigate Risk?

How Many Confirmations Are Typically Recommended for a Large-Value Transaction and Why?

What Is the Role of Block Depth in Establishing Transaction Finality in PoW?

How Does Transaction Confirmation Time Impact the Risk of a Double-Spend?

How Does the Increased Gamma near Expiration Affect Hedging Costs?

How Does Increasing the Number of Block Confirmations Reduce the Risk of a Successful Reorg Attack?

What Is the Cost for an Attacker to Execute a Persistent Transaction Spam Attack?

What Is the Minimum Number of Confirmations Generally Considered Safe to Mitigate a Double-Spend Risk?

Glossar

Transaction Value

Assessment ⎊ This is the nominal denomination of the asset being transferred within a transaction, representing the economic quantum being moved across the ledger.

Confirmations

Finality ⎊ In blockchain environments, the number of subsequent blocks appended after a transaction's inclusion dictates the level of assurance regarding its permanence.