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.
Context ∞ News often discusses stake bounded finalization in the context of Proof-of-Stake network security and transaction certainty, particularly with protocols like Ethereum 2.0. This feature is critical for applications requiring high assurance of transaction immutability. Debates frequently center on the specific economic parameters that define the “bounded” aspect, such as the amount of stake required to make a reversal prohibitively expensive. It is a key element in understanding the security model of modern Proof-of-Stake blockchains.
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