What Is ‘Probabilistic Finality’ in PoW?
Probabilistic finality means that a transaction is never 100% final but becomes exponentially more final as more blocks are mined on top of it. In PoW, a transaction is considered secure after a certain number of confirmations (e.g. six blocks).
While a chain re-organization is theoretically possible, the economic cost and computational power required to reverse a transaction after many confirmations make the probability of reversal negligible.
Glossar
Computational Power
Capacity ⎊ The computational power, within the context of cryptocurrency derivatives and options trading, fundamentally represents the aggregate processing capability available to execute complex calculations and simulations.
Probabilistic Finality
Certainty ⎊ Probabilistic finality within cryptocurrency and derivatives represents a quantified assessment of settlement irreversibility, diverging from traditional absolute finality models.