Zero Confirmation Transaction
A zero confirmation transaction is a bitcoin transaction that has not yet been included in a block on the blockchain.
What Are Zero Confirmation Transactions?
A zero-confirmation transaction is a transfer of funds that is yet to be processed and confirmed by the blockchain network. These transactions are initiated when a person sends cryptocurrency from one wallet to another.
As soon as this action is completed, the transaction enters a waiting period where miners, who validate these transactions, will confirm or reject it based on certain criteria.
Before it can be fully accepted and recorded in the blockchain ledger, the miner needs to verify that all details of the transaction are correct. In order for the miner to process and confirm the transaction, the sender must pay an appropriate fee for them to do so.
In cases of high traffic or insufficient fees, this confirmation process may take longer than usual. If a miner takes too long to accept and confirm the transaction then it would become unconfirmed pending confirmation and remain in limbo until further notice.
During this period, other miners will not be able to access and validate it until someone finally confirms its authenticity and validity. Once this has been done then the transaction will enter a ‘confirmed’ state and be written onto the permanent blockchain ledger as a legitimate transfer of funds.
Until such time where this occurs, however, any unconfirmed transactions will remain in an unclear state which could potentially result in them being rejected by other miners at a later stage if deemed necessary.