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Stake Bounded Finalization

Definition

Stake Bounded Finalization is a property in Proof-of-Stake blockchain systems where transactions, once included in a block, are considered irreversible after a certain amount of staked collateral has been committed to that block’s validity. This mechanism provides a high degree of transaction certainty and security. It means that reverting a finalized block would require an attacker to forfeit a significant economic stake. This ensures strong security guarantees for confirmed transactions.