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Crypto Terms:  Letter T
Jul 07, 2023 |
updated: Apr 02, 2024

What is Timestamp?

Timestamp Meaning:
Timestamp - a categorization of when a certain transaction occurred.
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Let's find out Timestamp meaning, definition in crypto, what is Timestamp, and all other detailed facts.

A timestamp is essentially a type of classification for when a particular transaction took place. Moreover, it is the fundamental process for miners to get compensation for mining each block.

Satoshi Nakamoto, the creator of Bitcoin, stated in his whitepaper that timestamps are intended to eliminate the risk of double counting. Furthermore, when a BTC block is made, two timestamps are often involved: one is the block header, which is estimated by the miner, and the other is the exact time the block was produced.

Even though the goal is that both must provide the identical timestamp,  there is a small possibility of the miner inputting incorrect timings or intentionally lying about times. However, Bitcoin has devised two measures that should prevent this from happening.

For example, the Median Time Stamp is the first line of defense against the threat. The MPT rule requires that the time stamp be greater than the median value of the previous 11 blocks. Its major function is to ensure that the blockchain goes ahead in time, whereas the second principle is to prohibit the blockchain from moving too far ahead.

Additionally, the highest allowable time gap between the node's time and the local time system cannot go over 90 minutes. Nonetheless, these restrictions are intended to safeguard the accuracy of cryptocurrency timestamps.