Confirmations refer to the number of times a digital asset transaction is validated and recorded on a blockchain following the initial block that includes it. Each subsequent block added to the chain is a confirmation of the transactions in all previous blocks, further cementing their place in the blockchain and reducing the risk of a reversal.
In simple terms, the flow is as follows:
When you send or receive a digital asset, the transaction first gets broadcast to the network.
Miners or validators then pick up the transaction, verify its validity, and include it in a new block.
After a transaction is incorporated into a block, it obtains its initial confirmation.
Every additional block added to the blockchain after this provides an additional confirmation for your transaction.
The greater the number of confirmations for a transaction, the more challenging it is to alter or reverse, enhancing its security. Various blockchains may necessitate distinct confirmation counts to deem a transaction as "settled". For example, it's common for Bitcoin exchanges to wait for six confirmations before crediting a deposit, whereas other chains might require fewer or more.