How do I use walletnotify? I have bitcoin daemon and I want to use the walletnotify option with a json-rpc call. Some of the examples use a "transaction.sh" file for walletnotify. What is it for?

What do I have to write in that sh file, to make walletnotify work for more than 6 confirmations.
First you must configure your bitcoin.conf file for JSON-RPC

rpcallowip=127.0.0.1
rpcuser=yourusername
rpcpassword=reallystrongpasswordthatsnothis
rpcport=7788
walletnotify=/home/scripts/transaction.sh %s


Where transaction.sh is some bash program. One approach is to have it make an http request to some process to notify you of the deposit. An example:

#!/bin/sh
curl -d "txid=$1" http://127.0.0.1/some/route


walletnotify will execute transaction.sh every time you either


receive bitcoin
send bitcoin
when a bitcoin gets its first confirmation


%s is the transaction ID or txid which gets passed to transaction.sh.