Let’s illustrate an example. Cryptocurrency like Bitcoin consists of its own network of peers. Every peer has a record of the complete history of all transactions as well as the balance of every account. By the end of every transaction and upon confirmation, the transaction is known almost immediately by the whole network.
A transaction includes a process where A gives X amount of Bitcoins to B, and is signed by A’s private key. After signed, a transaction is broadcasted in the network. The information is sent from one peer to every other peer on the network. Confirmation is a critical stage in the cryptocurrency system.
Confirmation is everything. When the transaction is not confirmed, it has the possibility of being hacked and forged. When a transaction is confirmed, it is set in stone. It can’t be reversed, it is impossible to be hacked, it is not forgeable as it is part of a permanent record of the historical transaction: The Blockchain.