Probabilistic Finality vs Instant Finality

Probabilistic finality and instant finality are two different types of finality in blockchain systems, each with its own characteristics and implications for the security and reliability of the network.

Networks utilizing Nakamoto-style consensus protocols, such as Bitcoin and Cardano, offer probabilistic finality. In these systems, the finality of transactions increases as more blocks are added on top of the transaction-containing block. However, they do not offer absolute finality, as there is a minor probability of a blockchain reorganization occurring.

In contrast, blockchains using consensus algorithms like Tendermint provide instant finality. In these systems, a block, once created and approved by validators, is immediately considered final, eliminating the possibility of a reorg. This feature ensures that forks do not occur as long as a significant portion of validators remains honest, allowing users to trust the immediate finalization of their transactions.

Last updated