An unconfirmed bitcoin transaction is a problem affecting many investors. It first appeared on a large scale in December 2017, when we saw the first huge increase in the value of Bitcoin.
Even such advanced servers could not cope with stock market overloads and DDoS attacks. This meant that about 200,000 transactions were not confirmed for more than a day. Today the situation is much better, but unconfirmed trades are still a problem for novice traders. Why do they arise? How to deal with them?
Unconfirmed Bitcoin Transaction
Bitcoin is a virtual currency that works with a Proof-of-Work (PoW) algorithm. When we trade in any wallet, the information is sent to a memory pool. Only then miners can register it in the public trading book. Miners receive block rewards for each confirmation, each of which is a representation of a set of data describing the transaction. The information remains in the memory until it is confirmed. The problem is that blocks can only contain details of a certain number of transactions.
This is the main reason why bandwidth is one of the most questionable issues on the Bitcoin network. Before the introduction of SegWit, blocks were limited to 1 MB from the start. Block rewards mobilize miners to mining, and they are irreplaceable. So how to encourage them to receive our transaction in the shortest possible time? It is best to make larger transactions and add a transaction fee.
Unconfirmed bitcoin transaction – how to cope?
Before you start to think about how to deal with an unconfirmed transaction, you need to make sure you have the status of the transaction. First of all, you need to check whether you have received the transaction identification that you receive when the transaction takes place. You can check all important transaction information in any Blockchain explore. If we find out that our trade has been suspended for a long time, we can respond in three ways. We can, for example, wait for confirmation. It may take up to a week before this happens.
You can also wait until it is removed from the mempool, i.e. expires. Another alternative is to replace it by a fee, the so-called Replace-By-Fee operation. With this option you can create the same transaction with one small difference – a higher transaction fee. This will probably encourage some miner to confirm the transaction. However, this is not a way that supports the BTC community, because it clearly destroys confidence in cryptocurrencies. We do not recommend this method to beginner traders.
Unconfirmed Bitcoin transactions – cancellation
Transactions executed with BTC are irrevocable. There is no body that manages cryptocurrencies, so no one can cancel a sale or purchase. However, most wallets have an option that prevents double payments through cryptographic techniques and is the first cryptocurrency to use this method to help users. However, in case of unconfirmed currency transfers there are gaps and it is possible to “switch” the transaction by increasing the expense.