Transaction Finalization Latency

Definition ∞ Transaction finalization latency measures the time elapsed from when a transaction is initiated until it achieves irreversible confirmation on a blockchain. This includes the time for network propagation, block inclusion, and subsequent confirmations required for the transaction to be considered immutable. Lower latency indicates faster and more efficient transaction settlement. It is a key metric for network performance.
Context ∞ Transaction finalization latency is a critical performance metric frequently highlighted in news reports and technical analyses of blockchain networks. Efforts to reduce this latency are central to scaling solutions and protocol upgrades, aiming to make digital assets suitable for high-speed applications like payments and real-time trading. Lower latency is essential for improving user experience and broader adoption.