Crypto glossary

Finality

Definition

Finality is the point at which a blockchain transaction can no longer be reversed or altered, either with practical certainty or by protocol guarantee.

Finality describes how certain it is that a confirmed transaction will stay in the chain. On proof-of-work chains such as Bitcoin it is probabilistic: each new block added on top makes a reversal less likely, so recipients wait for several confirmations. Many proof-of-stake and BFT-style chains offer deterministic finality, where a block is final under the protocol's rules once validators have signed off on it.

Ethereum finalises blocks in checkpoints, usually about 13 minutes after a block is proposed, and reverting a finalised block would require at least a third of all staked ETH to be slashed. Exchanges and bridges set their deposit rules around finality, and rollups depend on it twice: on their own chain and on Ethereum.

Faster finality improves the user experience but often requires a smaller or more coordinated validator set. A network that stops finalising, as Ethereum briefly did in May 2023, keeps producing blocks but cannot offer the same guarantees until finality resumes.

Example

An exchange may credit a bitcoin deposit after three to six confirmations, roughly 30 to 60 minutes, while an Ethereum deposit may be credited once its block is finalised.

Related terms

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