What Is the Difference between Probabilistic Finality and Absolute Finality?
Probabilistic finality, common in Proof-of-Work, means the chance of a transaction being reversed decreases exponentially with each new block added. It is never zero, but becomes negligible after many confirmations.
Absolute finality, common in some Proof-of-Stake or hybrid systems, means that once a transaction is finalized (e.g. signed by a supermajority of validators), it is mathematically guaranteed to be irreversible. Absolute finality offers a stronger, immediate guarantee of immutability.
Glossar
Absolute Finality
Settlement ⎊ Absolute finality, within cryptocurrency systems, denotes the irreversible confirmation of a transaction on a distributed ledger, eliminating the possibility of reversal or alteration.
Finality
Assurance ⎊ Finality represents the definitive assurance that a confirmed transaction on a distributed ledger is irreversible and cannot be cryptographically or economically challenged.
Probabilistic Finality
Certainty ⎊ Probabilistic finality within cryptocurrency and derivatives represents a quantified assessment of settlement irreversibility, diverging from traditional absolute finality models.
Finality Types
Definition ⎊ Finality refers to the point at which a transaction on a blockchain cannot be reversed or altered.