How Do Different Consensus Mechanisms Achieve Transaction Finality?
Proof-of-Work (PoW) achieves finality through the economic cost of re-mining a longer chain; the longer the chain, the more expensive it is to reverse, leading to probabilistic finality. Proof-of-Stake (PoS) often uses BFT-style consensus mechanisms, where a supermajority of validators must cryptographically attest to a block, granting it deterministic finality.
Hybrid systems may combine elements, using PoW for chain security and a PoS layer for finality assurance.
Glossar
Economic Cost
Assessment ⎊ Economic Cost in the context of crypto networks refers to the real-world resources expended to maintain the ledger's operation, most notably the energy consumption in Proof-of-Work systems or the opportunity cost of staked capital in Proof-of-Stake systems.
Consensus Mechanisms
Validation ⎊ Consensus mechanisms, within cryptocurrency, establish trust and secure transaction records without a central authority, fundamentally altering traditional financial infrastructure.
Chain Security
Durability ⎊ : This refers to the protocol's sustained ability to resist censorship, double-spending, and network partitioning over extended operational periods, which is the ultimate test of its decentralized design.