Don’t Trust, Verify - the basic principle of using cryptocurrency

“Don’t Trust, Verify” is an idiom that is used among investors and traders as a reminder that all data is subject to verification.

The digital coin system operates on fundamentally essential differences from the fiat one. The key points are that each market participant can use their digital assets and engage in various activities to make a profit under the conditions of complete confidentiality of personal data and anonymity. Another significant factor is the complete decentralization of all processes with open-source code, which ensures, on the one hand, transparency and, on the other, the possibility of fraud. That is why in cryptocurrencies, the basic principle is Don’t Trust, Verify. To ensure the appropriate level of reliability and security of the data and assets of each community member, the developers have provided multi-stage verification of each transaction.

According to the standard, the recipient cannot immediately use the funds after the payment is made. The principle of “Don't trust, verify” is revealed here as follows. To confirm the validity of each transaction, you must first receive 6 confirmations from miners. Verification is carried out by adding the transaction to a new block. The number of 6 confirmations is the generally accepted norm. In practice, individually, depending on the conditions of interaction between participants in the cryptocurrency system, requirements for only 3 confirmations can be set, or, conversely, the threshold increases to 60-100 confirmations.