Crypto Terms: Letter F

What is Finality?

Finality MEANING:
Finality - an assurance that crypto transactions cannot be changed, reversed, or rejected once they are performed.
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Let's find out Finality meaning, definition in crypto, what is Finality, and all other detailed facts.

Finality is used to determine how long one must wait for a reasonable assurance that cryptocurrency transactions conducted on the blockchain will not be rejected or altered. An endless waiting period on a blockchain network can have a significant negative impact on organizations that accept crypto as a form of payment. Thus, finality is a vital feature for them. 

I bet all of us have been in a situation where we had to wait at least 30 minutes standing in the line to be able to purchase something. It was very irritating and inconvenient, right? Thus, companies must always take into consideration the fact that the speed of crypto transactions is very important.

Transactions completed in a blockchain have a natural finality. Because of that, they're usually referred to as immutable. Though most blockchain protocols display only a preliminary transaction finality. This means that transactions are not immediately final but their finality grows as more and more blocks are confirmed.

Therefore, the finality rate of a blockchain is affected by its latency level. This means that the finality rate is defined by the time it takes for a chain to confirm a transaction. Thus, it’s crucial to have minimal latency while designing a payment system in order for it to be effective.