Finality
Explore the concept of finality in blockchain systems and learn about the steps involved in achieving transaction settlement.
Last updated
Explore the concept of finality in blockchain systems and learn about the steps involved in achieving transaction settlement.
Last updated
Finality in blockchain systems refers to the point at which a transaction is considered irreversible and permanently part of the blockchain. This concept is crucial for ensuring transaction security and reliability.
On Ethereum, finality is typically achieved after 2 , which translates to approximately 13 minutes under normal network conditions. This duration allows for sufficient block confirmations to prevent reversals and ensure that transactions are settled securely.
Validium Network, as a Layer 2 (L2) rollup, ties its finality and security mechanisms to those of the underlying Layer 1 (L1) Ethereum chain. The steps involved in reaching finality in Validium Network include:
Batch Formation: Transactions are collected and grouped into a batch. This step generally takes a few minutes.
Batch Commitment: The complete batch is committed to the Ethereum blockchain.
Proof Generation: A cryptographic proof that validates the entire batch is generated. This process typically takes about an hour.
Proof Submission: The generated proof is submitted to an Ethereum smart contract for verification.
Batch Finalization: The batch undergoes a final verification and is settled on Ethereum. This step includes a delay of approximately 21 hours as a security measure during the alpha phase of Validium Network.
Overall, the complete finality time for a transaction on Validium Network is around 24 hours, aligning with the finality of the corresponding Ethereum block.
Advancements in validity proof research are continuously being made, promising potential reductions in proof generation times and, consequently, faster finality periods in the future.
While the full finality process on Validium Network can take up to 24 hours, transactions are treated with instant confirmation for user convenience:
Immediate Transaction Display: Once submitted, transactions are quickly shown in the user interface and API as unconfirmed.
Immediate Asset Usability: Users can immediately utilize the transferred assets for further transactions, which may even be included in the same Validium Network batch.
This feature enables a seamless user experience, although more cautious users may opt to wait for the transaction to reach full finality or pass any intermediate steps before fully trusting the transaction's completion.