How many confirmations are needed at Bitcoin ATM and why?

#SUCCESS 🙌🏆🥇🎯💯

6 confirmations are no longer needed for (currently unprofitable) 51% attacks, while it protects investors from double spend and protects against blockchain-level forks (and we're not talking about cryptocurrency forks, such as Bitcoin to Bitcoin Cash), but daily blockchain-level forks.

Why 6 confirmations and not 3? Security of transactions in Bitcoin ATM

Why is the operator of Bitcoin ATMs against reducing confirmations from 6 to 3 on bitcoin? It's because 6 confirmations ensure that a possible fork will not touch the transaction. 3 confirmations open the gateway to loss of funds.

It's not so much about the 51% attack, but about avoiding you losing money as a result of the fork. We are talking about a fork at the block level, which happens every day. Not a fork at the level of cryptocurrencies, such as Bitcoin to Bitcoin Cash.

That's because reducing confirmations to 3 opens the gateway to forks, as a result of which you may lose your money.

Let's discuss this in more detail:

Nods communicate with each other on the principle of "the majority is always right."

In blockchain, sometimes a particular node is disconnected from others for a reason beyond our control. In blockchain, it is also sometimes the case that new blocks fall in every 2-3 minutes.

So let's say that such a situation takes place: Nod is disconnected from others for a while, and new blocks come in every 2 minutes. We get information that funds are coming in....

What's going on?

After 3-4 blocks, there is finally a synchronization with the previously disconnected node and it turns out that... your transaction is gone!

In short, the 6 confirmations ensure that a possible fork will bypass transactions, which translates into security of funds.

Operators and exchanges with 1 confirmation on BTC are playing a dangerous game

Any operator or exchange that reduces the number of confirmations to 3 causes some of its users to lose money in just this way. As they operate on a global scale, the voices of individual customers who have lost their money is too quiet.

Giants are paid to offer faster transactions at the cost of a few tragedies - a few lost life savings. The operator of Bitcoin ATMs in Warsaw, claims:

However, for us, any such situation in which a user does not receive funds is unacceptable, because unlike the giants - exchanges and operators Bitcoin ATMs with 1000+ locations, we keep in touch with our clients, talk to them every day, solve problems. These problems often go beyond the scope of our duties, such as expediting transactions that are stuck in the network due to a low set fee for miners.

We process refunds in very unusual situations when other operators in the world do not. It is unacceptable for a user to ever write to us at Support claiming that his funds have disappeared and there is nothing we can do because he lost them due to a problem at the blockchain level. It is mathematically certain that within 3-7 months of lowering the number of confirmations to 3, such a situation will occur, so we decide to leave the number of confirmations at 6.

#security #success #cyber security