Consensus Finality

Definition ∞ Consensus Finality denotes the assurance that once a transaction is recorded on a blockchain, it cannot be reversed or altered. Different blockchain protocols achieve varying degrees of finality, ranging from probabilistic to absolute. Probabilistic finality, common in proof-of-work systems, means the likelihood of reversal diminishes with each subsequent block added. Absolute finality, often found in proof-of-stake systems, means a transaction is irreversibly settled after a specific protocol-defined threshold.
Context ∞ In cryptocurrency news, Consensus Finality is a key metric when evaluating the security and transaction reliability of blockchain networks. Debates often center on the trade-offs between speed and the strength of finality offered by different consensus mechanisms. For instance, reports on new proof-of-stake chains often highlight their quick finality as an advantage for payment systems. Understanding a protocol’s finality properties helps assess its suitability for various digital asset applications and commercial use cases.