Blockchain Confirmation Policy

Overview

Levain currently has an internal blockchain confirmation policy that is used to determine the number of blockchain confirmations required before a transaction is considered confirmed. This policy applies only to blockchains that has the concept of finality, such as Bitcoin, Ethereum and most EVM-compatible blockchains, across:

• Transactions
• Wallet creation, if applicable, only for blockchains that require a transaction to create a wallet
• Webhook events, when a transaction is subsequently considered as confirmed

Significance of blockchain finality

Blockchain finality is the concept that once an on-chain transaction is confirmed, it is considered irreversible and irrevocable. This is important as it ensures that the transaction is not susceptible to attacks, such as double-spending.

The number of confirmations required before a transaction is considered confirmed varies across different blockchains, and is dependent on the blockchain's consensus mechanism. Usually, the higher the number of confirmations, the more unlikely it is for the transaction to be reversed or rolled back.

Blockchains are different from traditional financial systems in that they are decentralized and rely on consensus mechanisms to validate transactions. This is in contrast to traditional financial systems as they generally rely on a central authority (e.g. central banks, clearing houses, etc.) to process transactions, and once a transaction is confirmed, it is considered final.

For example, in Singapore, the Monetary Authority of Singapore (MAS) regulates the concept of finality - and when a transaction is considered final, irreversible and irrevocable - under the Payment and Settlement Systems (Finality and Netting) Act.

Existing confirmation policy

The below table shows the default blockchain confirmation policy within Levain. For now, you won't be able to configure the policy for your organizational account.