Bitcoin transactions are processed and added to the Bitcoin blockchain approximately every 10 minutes in 1MB-sized blocks, each containing a few thousand recently made transactions.
A transaction is considered completed when the block containing it has been added to the blockchain. While the usual time for a transaction to be included is around 10 minutes, it can sometimes take 20-30 minutes or even hours. The processing time depends on the load of the Bitcoin network and the fee amount set by the sender.
Here are the steps in the transaction process:
Sender initiates a transaction from the Panaroma Decentralized wallet app. The transaction is instantly sent to the Bitcoin network and remains pending until a network node (miner) validates and adds it to the blockchain.
The Bitcoin network often has more pending transactions than can fit into 1MB blocks created every 10 minutes, leading to a backlog. Network nodes prioritize transactions based on the fees paid, as higher fees provide economic incentives for miners.
Due to the backlog, transactions may remain in a 'pending' state for hours or even days until the network becomes less congested, and the initially set transaction fees become sufficient to be processed in the next block.
To ensure timely completion, it's crucial to set the transaction fee considering the current load on the Bitcoin network.