Finality

Finality in blockchain refers to the point at which a transaction is considered irreversible and permanently recorded on the blockchain. Once finality is achieved, the transaction cannot be altered or undone, ensuring the integrity and trustworthiness of the ledger. For web3 developers, understanding finality is crucial when designing applications that require certainty about the state of transactions, such as financial services or supply chain management systems.

Different consensus mechanisms offer varying degrees of finality; for instance, proof-of-work systems achieve probabilistic finality, while proof-of-stake systems can offer deterministic finality. Incorporating considerations of finality into application logic helps in managing risks associated with transaction confirmations and potential forks.