Top 5 questions about P2P Bitcoin transfers

Most of the Bitcoin (BTC) transactions are conducted through central cryptocurrency exchanges. Such central structures manage to prevent possible problems by providing convenience to the users.

On the other hand, digital wallet users who want to make their own transactions but do not yet have sufficient experience have a few questions in their minds.

Ek Okuma: What is a Crypto Money Wallet? What Are The Types Of Crypto Money Wallets?

In this article, we have answered the 5 most frequently asked questions about interpersonal Bitcoin transfer transactions for you.

Why do Bitcoin transactions take long?

In the Bitcoin network, which is expected to create blocks with an average of 10 minutes under normal conditions, transaction times can be extended due to the scalability problem that has existed since the first day.

A transaction on the Bitcoin network needs to be verified six times before it is sent to the recipient to be finalized. If there is high demand on the network, it can take from 10 minutes to a day to verify a transaction. In some cases, it can take even longer.

Bitcoin’s scalability problem has existed for many years. The network has an average capacity of seven transactions per second. This is very low compared to payment giants like Visa.

On the other hand, there are workarounds such as Lightning Network, which works by adding a new layer on the blockchain and offer real-time transactions, but users do not show enough interest in such second layer solutions.

More information: What is the Lightning Network and How Does It Work?

Can Bitcoin transactions be canceled?

This is a very common question, but the answer is no.

Blockchain records are designed to be irreversible. When any transaction is added to the block and recorded on the chain, it completely leaves the control of the users.

Therefore, if a direct transaction is to be made between peers without using a crypto currency exchange, it is necessary to check several times to make sure that there are no typos in the address. It should also be carefully examined whether the correct amount of cryptocurrency has been sent.

How can I find out what the bitcoin transfer is like?

Although some crypto money exchanges aim to provide 100 percent transparency to their users, this information is not always shared. In crypto currency exchanges such as Binance and HitBTC, information such as the state of the transaction, how many confirmations it received or how many approvals it should receive in total can be presented in real time after an external transfer order is given.

On the other hand, “How are Bitcoin transactions tracked?” As stated in the article, information about the current status of the transfers can be obtained thanks to the process tracking tools called “explorer”.

Example of Bitcoin transfer transaction pending approval. Source: BlockCyper.com

As shown in the example above, it seems that a fee of 0.00012521 BTC has been paid for a Bitcoin transfer transaction and that only 1 of the 6 confirmations required to complete the transaction have been given. When all 6 confirmations are given by the blockchain nodes, the transaction will be completed. (When this article was prepared for publication, 6 approvals were given and the process was completed)

Ek okuma: What is a Bitcoin Node? How does it work?

Attention: If the buyer assumes that the transfer will be completed before the approval process is completed and trades goods or services, he risks himself. Because not completing the approval process leaves the door open to the possibility of “double spending” called “Race Attack”.

How to prevent Bitcoin transfer stuck?

First of all, it is important to make sure that sufficient transaction fees are paid.

As the number of transactions on the Bitcoin network continues to increase rapidly, so does the number of miners to process. In such cases, high-fee transactions are prioritized. When miners create blocks, they first write the transfers that have paid the most transaction fees.

As a result, the verification of a low-fee cryptocurrency transaction can take hours, days, and, albeit unlikely, weeks. The main reason for such long delays is that transactions with higher fees are added to the list almost every second.

As a result, transfers with low transaction fees are waiting to be approved for a long time in the so-called “mempool” pool.

Users who prefer leading cryptocurrency exchanges, instead of trading between peers, can find solutions faster. Since the clearing transactions in central exchanges are completed within the service provider’s own system, not on the blockchain network, the transaction results almost without waiting.

You may be interested in: What is a Crypto Money Exchange? How Is The Bitcoin Price Determined?

Can accidentally sent Bitcoin be recovered?

If the cryptocurrency is accidentally sent to a different address, it is possible to find out which address it went to, but unfortunately, seeing this address does not mean you will get your money back. Any transaction that has been approved and added to the block on the chain cannot be undone under normal circumstances.

Of course, the transfers mentioned here are defined as P2P (Peer-to-Peer), that is, person-to-person transactions. as possible.

The transfer of cryptocurrencies such as Bitcoin through the central exchange or trading platforms is contrary to the fact that it is completely based on decentralization, but it can sometimes allow accidental transactions to be reversed.

You may be interested in: What is Peer-to-Peer (P2P)? How Does the Peer-to-Peer Bitcoin Network Work?

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