Why do you wait for 3 confirmations before depositing into my account?
This is to ensure the transaction has been verified by the bitcoin network. By using multiple confirmations, we are given multiple points of verification to determine that the transaction is valid and executable.
Please explain the details I want to know more!
You can visit blockchain.info and enter your wallet address in the top right hand corner of the page to check the status of your Bitcoin transfer. This works for both deposits and withdrawals. Blockchain.info is what’s called a block explorer. Block explorers are common with public or pseudo-anonymous blockchains like the Bitcoin blockchain. A public or pseudo-anonymous blockchain allows any user to see view transaction histories, inputs and outputs of transactions, and number of confirmations on any transaction.
What is a confirmation?
- A transaction describes the transfer of BTC through the Bitcoin network.
- The Bitcoin network is comprised of thousands of computers called ‘nodes’, which hold the entire transaction history of the Bitcoin blockchain.
- The Bitcoin blockchain is comprised of hundreds of thousands of consecutive blocks, these blocks hold transaction information.
- When a transaction is executed, the transaction is sent to the mempool where it will sit until it is picked up by a miner.
- Once the miner picks up the transaction, it will be added to the current block.
- When the transaction is in the current block, it can then be compared to the history of transactions on the network.
- If the history of Bitcoin transactions verifies that the user has the amount of BTC they wish to send, the transaction will be confirmed.
- ACX requires this to happen three times to ensure accuracy using multiple verification points.
If no confirmations are received, your transaction will sit in the mempool for about a week or so before being returned back to you.
The strength and immutability of the Bitcoin network comes from it’s long blockchain, and multiple points of verification.
Here is a more indepth answer: https://en.bitcoin.it/wiki/Confirmation