A key aspect of this refinement is the assumption that users are authenticated, which significantly mitigates the risk of denial-of-service (DoS) attacks on the pool by identifying users who attempt to create unusual blocks. This authentication framework allows for a more secure and manageable transaction verification process.

For transactions that are not immediately recognizable or are unknown, a two-step verification process is implemented. First, it is essential to determine whether a transaction is spendable, ensuring that it meets the criteria for being processed and added to a block. Following this, a conflict check is conducted to ascertain that there are no discrepancies or clashes with other transactions within the proposed block. This layered approach to verification ensures that only valid and non-conflicting transactions are considered for block inclusion, enhancing the integrity and reliability of the blockchain network.