Transactions that have been broadcast to the network but not yet included in a block.
Zero-confirmation (0-conf) transactions are cryptocurrency transactions that have been broadcast to the network but not yet included in a block. These transactions exist in the mempool, waiting to be confirmed by miners and added to the blockchain.
"When you pay for coffee with Bitcoin Cash, merchants often accept zero-confirmation transactions, allowing you to leave with your purchase before the transaction receives its first confirmation."
Zero-confirmation transactions are commonly used for small-value transactions where waiting for confirmations would be impractical. They offer a balance between security and convenience, particularly in retail settings where transaction speed is important.
"For small retail purchases, the risk of accepting zero-confirmation transactions is often outweighed by the improved customer experience of near-instant transactions."
The security of zero-confirmation transactions varies across different blockchains. Networks with features like Replace-By-Fee (RBF) make zero-confirmation transactions less secure because transactions can be replaced before confirmation. Conversely, networks like Bitcoin Cash that don't have RBF and maintain consistent low fees make double-spending more difficult.
"Bitcoin Cash is more suitable for zero-confirmation transactions than Bitcoin because it doesn't implement Replace-By-Fee, reducing the risk of double-spend attacks."
Despite their convenience, zero-confirmation transactions always carry some risk. Merchants accepting these transactions should consider factors such as transaction value, customer relationship, network congestion, and whether the transaction includes appropriate fees.
"A jeweler selling expensive items would likely wait for multiple confirmations before finalizing a sale, while a coffee shop might accept zero-confirmation transactions due to the low value and the impracticality of someone executing a double-spend attack for a few dollars."
All terms and definitions may update as the Cryptionary improves.