IXIDE Explains: What Is Finality and Why Do Different Networks Require Different Numbers of Confirmations?
Welcome to IXIDE — your partner in the world of cryptocurrency!
In the “IXIDE Explains” series, we explain in simple terms what happens to a cryptocurrency transaction after it is sent.
Today, we’ll look at finality — the point at which a transaction is considered effectively or fully settled — and explain why one network may require only a few confirmations while another requires more.
What Is Finality?
Finality is the point after which a transaction can be considered practically or definitively secured in the blockchain.
In simple terms:
transaction sent → included in a block → receives confirmations → reaches a sufficient level of finality.
After that, the chance that the blockchain will reverse or reorganize the block containing the transaction becomes extremely low, or the protocol may explicitly consider that state finalized.
Why Isn’t One Block Always Enough?
When a transaction is first included in a block, it receives its first confirmation.
However, in some blockchains, another competing version of the chain can theoretically appear.
If the network later chooses that version as the main chain, the most recent blocks can be reorganized.
This process is called a reorganization, or reorg.
That is why many services wait for several additional blocks after the first confirmation.
The deeper a transaction is in the blockchain history, the harder it becomes to replace.
What Is a Transaction Confirmation?
Each new block added after the block containing your transaction increases the number of confirmations.
For example:
transaction included in a block → 1 confirmation
next block appears → 2 confirmations
another block appears → 3 confirmations
and so on.
However, the number of confirmations required before funds are credited depends on the blockchain and the rules of the receiving service.
Why Does Bitcoin Often Require Several Confirmations?
Bitcoin does not have one fixed moment where the protocol simply says:
“This transaction is now absolutely irreversible.”
Bitcoin finality is usually considered probabilistic.
The more blocks that are added after the transaction, the lower the probability that this part of the blockchain history will change.
For a small payment, a service may accept a relatively small number of confirmations.
For a larger transaction, it may require more.
This does not mean Bitcoin is unreliable — it is simply how its consensus and risk model works.
Why Can Finality Work Differently in Proof-of-Stake Networks?
Some Proof-of-Stake networks use a more explicit finalization mechanism.
Validators do not only create and approve blocks. They may also participate in a process after which a certain blockchain state is formally considered finalized.
This differs from Bitcoin, where confidence generally increases gradually as more blocks are added.
Even so, exchanges and other services may still wait for additional confirmations or apply their own internal checks.
Finality and Confirmations Are Not Exactly the Same
These concepts are related, but they are not identical.
A confirmation shows how deeply a transaction is included in the blockchain.
Finality describes how confident the network or service can be that the transaction history will no longer change.
In one blockchain, finality may be estimated by the number of additional blocks.
In another, there may be a dedicated finalization mechanism.
That is why there is no universal rule such as:
“Three confirmations are enough for every cryptocurrency.”
Why Do Different Networks Require Different Numbers of Confirmations?
Several factors affect this:
consensus mechanism;
average block time;
finalization method;
probability of a reorg;
network security;
transaction amount;
policy of the receiving service.
As a result, two networks may use very different confirmation thresholds even for transactions of the same value.
A Faster Network Does Not Always Mean Fewer Confirmations
Users sometimes assume:
“If a new block appears every second, one confirmation must be enough.”
Not necessarily.
Block speed and transaction finality are different characteristics.
A network may produce blocks very quickly but still use a separate finalization process.
So it is important to look not only at how fast blocks are created, but also at when the network considers a transaction sufficiently final.
Why Can an Exchange Wait Longer Than Your Wallet?
A wallet may display:
Success
or
Confirmed
after the first confirmation.
But an exchange or crypto service may require more confirmations before crediting the funds.
This is part of risk management.
A service may consider:
the blockchain being used;
the transaction amount;
the stability of the network;
reorg risk;
its own security policy.
That is why a successful status in a blockchain explorer and actual crediting on a service may not happen at the same time.
What Is a Reorg?
A reorg is a reorganization of the latest blockchain blocks.
In simple terms:
the network first treats one sequence of blocks as the main chain, then later switches to another sequence.
If a transaction was included in a block that gets replaced, its status may change.
Deep reorganizations are rare on large, established networks, but their theoretical possibility is one reason why additional confirmations are used.
Can a Confirmed Transaction Be Reversed?
Theoretically, yes — if it has not yet reached a sufficient level of finality and a chain reorganization occurs.
However, the probability usually decreases quickly as more blocks are added.
That is why important transactions are often not considered fully settled after just one confirmation.
Why Can Large Transfers Require More Confirmations?
The larger the amount, the greater the potential risk for the receiving party.
Because of this, some services use different confirmation thresholds depending on transaction size.
For example, a smaller deposit may be credited faster, while a larger one may require additional confirmations.
This does not necessarily mean there is anything wrong with the transaction itself. It may simply be part of the service’s risk policy.
What Can You Check in a Blockchain Explorer?
Using the TXID, you can usually check:
whether the transaction was included in a block;
number of confirmations;
block number;
amount;
sender and recipient address;
network fee;
current transaction status.
If a transaction has already received its first confirmation but the service has not credited the funds yet, check how many confirmations the service requires.
What Does This Mean for IXIDE Users?
When exchanging through IXIDE, a transaction may already appear as successful on the blockchain while the order is still waiting for additional confirmations.
This can happen because different networks use different finality models.
The required number of confirmations may therefore depend on:
the cryptocurrency;
the network;
the parameters of the specific transaction.
Users should not resend funds just because the order did not update immediately after the first confirmation appeared.
The first step is to check the TXID and the current transaction status.
Why You Shouldn’t Look Only at Time
A user may think:
“It has already been 20 minutes, so the transaction must be stuck.”
But time alone does not tell you whether a transaction is final.
One network may produce many blocks during that period, while another may produce only a few.
Network congestion may also affect processing.
It is better to look at:
transaction status;
number of confirmations;
network conditions;
requirements of the receiving service.
IXIDE Recommends
Before sending cryptocurrency, always check:
the selected network;
recipient address;
Memo or Tag, if required;
TXID after sending.
If the transaction has already been included in a block but the order is still waiting, first check the number of confirmations.
IXIDE recommends evaluating the transaction based on blockchain data rather than only on how much time has passed since it was sent.
Key Takeaway
Finality describes how permanently a transaction has been secured in the blockchain.
In Bitcoin, confidence increases as more blocks are added.
In some Proof-of-Stake networks, there are dedicated finalization mechanisms.
That is why different blockchains require different numbers of confirmations.
The main thing to remember is:
1 confirmation does not always mean final settlement.
A transaction may be completely valid, while the receiving service continues to wait until the required level of finality has been reached.