Skip to main content

How Does the Concept of “Economic Finality” Differ from “Cryptographic Finality”?

"Cryptographic finality" is the theoretical guarantee that a block is irreversible due to the cryptographic difficulty of reversing the Proof-of-Work (e.g. 6 confirmations).

It is probabilistic. "Economic finality," primarily used in PoS, is the point at which the cost of reverting a block is so high (due to slashing the attacker's stake) that it is economically irrational for any actor to attempt it.

Economic finality is a stronger, deterministic guarantee that relies on financial incentives rather than computational difficulty.

How Does the Finality Guarantee in PoS Compare to the Probabilistic Finality in PoW?
How Does Transaction Finality Differ between Bitcoin and Ethereum?
How Does PoW Differ Fundamentally from Proof-of-Stake (PoS)?
How Do Different Consensus Mechanisms (PoW Vs. PoS) Achieve Transaction Finality?