How Does the Concept of "Finality" Apply to the Price Reported by a DON? ⎊ Path

How Does the Concept of “Finality” Apply to the Price Reported by a DON?

Finality is the guarantee that a transaction or, in this case, a reported price, cannot be reverted or changed once it is recorded on the blockchain. For an oracle, finality means that the price is considered definitive and safe for protocols to use for critical actions like liquidation.

The oracle's finality is tied to the finality of the underlying blockchain it is built upon.

How Do ‘Byzantine Fault Tolerance’ (BFT) Consensus Mechanisms Offer Stronger Finality?

How Do Derivatives Markets Use the Concept of Blockchain Finality for Settlement?

How Does the ‘Economic Finality’ of PoS Compare to the ‘Probabilistic Finality’ of PoW?

How Does a Decentralized Oracle Network (DON) Mitigate the Risk of a Single Point of Failure?

How Does Transaction Finality Differ between Bitcoin and Ethereum?

What Is a “Request and Response” Data Flow Model in a DON?

What Are the Security Trade-Offs between a Fast Finality PoS Chain and a Slower PoW Chain?

How Does Transaction Finality Differ between Various Consensus Mechanisms?

Glossar

Underlying Blockchain

Ledger ⎊ The underlying blockchain, within the context of cryptocurrency derivatives and options trading, functions as an immutable, distributed ledger recording all transactions and state changes related to the derivative contract.