Definition ∞ A Finality Guarantee ensures that once a transaction is recorded on a blockchain, it cannot be reversed or altered. This assurance means that the transaction is permanently settled and immutable, providing certainty to all participants about the state of the ledger. Different blockchain protocols achieve finality through various consensus mechanisms, some offering immediate finality while others provide probabilistic finality over time. The strength of a finality guarantee is a key measure of a blockchain’s security and reliability for financial operations.
Context ∞ The concept of Finality Guarantee is a central discussion point when comparing different blockchain architectures, particularly in the context of enterprise adoption and regulatory compliance. A key aspect to consider is the trade-off between achieving rapid finality and maintaining decentralization or scalability within a protocol. Developments in consensus algorithms often aim to improve finality properties without compromising other important network characteristics.
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