Categories: Crypto Currencies

How Long Does a Bitcoin Transaction Take

What is Bitcoin transaction?

Information about transactions with bitcoins is recorded in special blocks, which are a list of transactions. If you put the blocks in a chain, you will get the history of the “circulation” of the cryptocurrency.

The block consists of a header and a list of transactions. The header contains hash codes of transactions, own and the hash of the previous block. The first in the list is the transaction, which indicates the reward (commission) for creating a new block.

To verify the authenticity of cryptocurrency transactions, transactions must be validated on the blockchain. It is a distributed blockchain database. Parts of it are stored on multiple computers on the Bitcoin network.

Transaction confirmation is its joining to the list of transactions in the block.

After the , the accounts on the sender’s and recipient’s sides are not updated immediately. In traditional applications, six blocks must be found to confirm a transaction to prove its validity.

At the same time, the user performing the operation can reduce the number of checks. This should be done if you operate with a small amount of bitcoins. This simplifies and speeds up the transaction confirmation process.

If the verification of the transfer of crypto money has not happened, then the system returns the funds back to the sender’s wallet.

How long are BTC transactions taking?

On average, a transaction takes from 20 minutes to 60 minutes, but at times of peak load this time can be increased many times.

The waiting time depends on the congestion of the blockchain network. Over the past two years, the number of bitcoin transactions has grown more than 8 times.

The speed of transactions in the Bitcoin network depends on many factors, and among them the most important are the following:

  • The load on the Bitcoin network.
  • A commission is charged for every transaction on the BTC network.

Methods to reduce the transaction time:

  • Increasing the commission for miners – experts advise “not to be greedy” and give for confirmation from 0.0002 BTC and more.
  • The amount of transferred funds – the more cryptocurrency you transfer, the higher the status of the operation in the “crypto network”.
  • Using specialized platforms like coinbase.com – on such services, buyers and sellers save their keys. Thanks to this, confirmation takes place within this platform and not on the general network

How to verify a Bitcoin transaction?

You can track any bitcoin transaction and BTC wallet using public services (registration and authorization are not required):

  • Blockchain.info
  • Chain.so
  • Blockstream.info

How to accelerate a bitcoin transaction?

Let’s consider several ways how to use the blockchain system in “high-speed mode”:

  • Using centralized services with a separate transaction system. There are resources that offer services for creating and using Bitcoin wallets that conduct digital currency transactions between their clients without involving the blockchain ecosystem. Such services offer their clients instant transactions, but only if the currency transfer takes place within the system. One of these services is Coinbase. It has a transaction system separate from the blockchain, thanks to which transfers can be made almost instantly.
  • Using multisig to speed up transaction confirmation in the Bitcoin system. Some companies, such as Green Address, besides the standard transaction signature provided by the system, put their multi-signature as confirmation of the reliability of the transfer. The blockchain system considers such transactions to be reliable and they are quickly accepted into the generated block. In addition, the use of multi signature technology enhances the security of cryptocurrency transactions.
  • Using open transactions and trusted servers. The bottom line is that an open transaction, when all the information about the sending and receiving parties is present, receives confirmation from the system faster by accepting the data in the generated block. But few people use open Bitcoin transactions, since this contradicts the very idea of ​​using digital currency, namely, – the anonymity of money transfers.

Bitcoin transaction fees

A feature of the Bitcoin system is that the user can set the amount of the commission at his own discretion. But the duration of the transfer directly depends on this value. The larger its amount, the higher the priority level of the corresponding operation and the less time it takes to receive confirmation from the system.

In the Bitcoin blockchain, transactions with a large amount of reward to the miners of the Bitcoin network are first validated. In some cases, if you save a lot, the confirmation procedure can take several days.

Now you’re probably thinking: if bitcoin transactions take that long, then how can it be used as a currency at all?

When Bitcoin technology will develop in full force, questions such as “how long it takes to confirm bitcoin transactions” or “how long it takes to transfer bitcoins” will remain in the past.

But at the moment, if you want to conduct a transaction on the main Bitcoin chain, you need to wait at least 60 minutes, and only after that you can say that your transaction is 100% successful.

Also see: Best Time Of The Day To Buy Bitcoin

Olivia Chloe

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