Why Is Transaction Finality Important for a Decentralized Exchange?
Transaction finality refers to the guarantee that once a transaction is confirmed on the blockchain, it cannot be reversed, altered, or canceled. For a DEX, strong finality is crucial because it ensures that trades are settled securely and permanently, preventing double-spending or malicious manipulation of trade outcomes.
Without finality, the exchange's trustworthiness is compromised.
Glossar
Transaction Finality
Principle ⎊ Transaction finality is the principle that once a transaction is recorded on a blockchain, it cannot be reversed, altered, or canceled, providing absolute and irreversible settlement assurance.
Transaction Throughput
Meaning ⎊ Transaction throughput quantifies the maximum number of transactions a blockchain network can process and validate within a given unit of time, typically measured in transactions per second (TPS).
Bft Consensus
Governance ⎊ Byzantine Fault Tolerance (BFT) consensus mechanisms, increasingly relevant within sustainable finance, provide a robust framework for decentralized decision-making, ensuring resilience against malicious actors or system failures.