Ledger Finality

Definition ∞ Ledger finality refers to the point at which a transaction recorded on a blockchain is considered irreversible and permanently settled. Once a transaction achieves finality, there is no possibility of it being altered, reversed, or removed from the ledger, even in the event of subsequent network disruptions or attacks. Different consensus mechanisms offer varying degrees and speeds of finality, impacting the security assurances for participants. This property is crucial for trust and confidence in decentralized financial systems, as it guarantees the definitive settlement of value transfers.
Context ∞ Ledger finality is a key performance metric and security feature frequently discussed in blockchain protocol comparisons and news about network upgrades. Protocols aiming for “instant finality” are often highlighted for their potential to support high-speed payment systems and complex decentralized applications. The quest for faster and stronger finality continues to drive innovation in distributed ledger technology.