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have you wondered how transactions get approved in Bitcoin blockchain why you need to wait for three to six confirmations for the transactions to appear in your wallet this video attempts to explain how a Bitcoin transaction is approved and the process behind it let's assume kobish transferred Bitcoin worth hundred dollars from one crypto exchange to another once he does the transfer the transaction message is sent to the network and passed around all the network participants which are also called nodes this is called the transaction pool currently the transaction is in an unconformity all the transactions in the transaction pool will be in an unconformity TISS now we will understand who is a minor in simple words those who validate new transactions and record them on the global ledger of a blockchain are called - and this activity is called mining to make it simple let's assume there are currently three miners who are trying to confirm the transaction from the transaction pool including go normally miners will select those transactions which generate a high transaction fees for them currently the number of confirmed blocks in the blockchain public ledger is 998 once the miner identify that the 998 block is a valid block they try to create a candidate block by adding unconfirmed transactions from the transaction pool now these miners are trying to add the 999th block to add the blocks they have to solve a complex mathematical problem and this is as the proof of work let's assume all the three miners were able to solve this problem and have a proof of work now we have three different candidate blocks let's call them 9 9 8 9 9 9 B and 9 9 9 C now which of these blocks will form part of the valid block will depend on the longest chain rule let's understand what is the longest chain rule now there are other miners were trying to create other valid blocks and based upon the speed by which a block is created other miners will keep on adding their blocks on the top of the earlier blocks here in this case minor C had a better processor which was able to create a block faster than miner a and B and hence new blocks were created on the top of block 9 9 9 C now the longest chain is the one created by 9 9 9 C and it will keep on adding other blocks like 1000 1001 and so on so what happens to the block 9 9 9 a and 9 9 9 B they have to create the proof work again with the new set of transactions from the transaction base each confirmations represent adding each block each confirmation will take on an average of around 10 minutes or more per block applying the longest chain rule in the proof of work unconfirmed transactions will become a confirmed transaction and add it to the blockchain ledger once the blocks are added - will receive transaction fees and block fees which will be the new Bitcoin created as an incentive for approving the transactions block rewards will be reducing every year and in the end only the transaction fees will be there as new bitcoins will not be created as a general rule the number of confirmations depend upon the size of the transactions follows zero payment with zero conformation considerably reversed wait for at least one one confirmation is enough for small Bitcoin payments less than thousand dollars three enough for payments between thousand and ten thousand dollars most exchanges require three confirmations for deposits six enough for large payments between $10,000 and $1,000,000 six is the standard for most transactions to be considered secure sixty suggested for large payments greater than one meaning less is likely fine but this is to be safe [Music]