Transaction Finality

Definition ∞ Transaction finality refers to the point at which a transaction on a blockchain is considered irreversible and permanently recorded. Once finality is achieved, the transaction cannot be altered or reversed, ensuring the integrity of the ledger. Different blockchain protocols have varying mechanisms and timelines for achieving transaction finality.
Context ∞ Transaction finality is a critical aspect of blockchain performance and security, frequently discussed in news concerning network upgrades and transaction processing capabilities. The speed and certainty of finality directly impact user experience and the suitability of a blockchain for various applications, from payments to decentralized finance. Debates often arise regarding the trade-offs between different finality models and their implications for network decentralization and security.