Part II · 3 — Finality and attacks

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Consensus only matters for the guarantee it delivers: when a transaction becomes irreversible. And every guarantee has an attack price. This section closes out consensus with what actually matters to the user — and to the adversary.


3.1 The two types of finality

Finality is the guarantee that a transaction will not be reverted. There are two regimes, inherited from the mechanism:

  • Probabilistic (PoW, and Nakamoto-style PoS) — never 100%, but grows with

    every block. In Bitcoin, 6 confirmations (1h) are treated as final; reverting would require overtaking the accumulated work.

  • Deterministic (BFT — Tendermint, etc.) — a block finalized by ⅔ of the

    validators is irreversible by protocol. Reverting would require ≥⅓ to cheat and be slashed.

The choice has a direct practical effect: an exchange accepts a deposit after N confirmations on Bitcoin, but instantly on a BFT chain.


3.2 Forks and the chain-choice rule

When there are competing branches, the fork-choice (chain-choice rule) decides the canonical chain:

  • PoW — heaviest chain (most work).
  • Ethereum PoSLMD-GHOST (the subtree with the most attestation

    weight), combined with the Casper FFG finality gadget.

Forks are also intentional: a soft fork tightens the rules in a backward-compatible way; a hard fork changes the rules incompatibly, creating a new chain (that's how BCH was born from BTC, and today's Ethereum from the fork of The DAO).


3.3 How consensus is attacked

Attack Applies to Mechanics Defense
51% PoW a hashrate majority rewrites recent blocks (double-spend) hardware/energy cost; deep reorgs are expensive
Nothing-at-stake naive PoS a validator signs every fork (signing is free) slashing punishes double-signing
Long-range PoS rewrite from an old point with leaked keys weak subjectivity (trusted recent checkpoints)
Grinding sortition trying to bias proposer selection sortition with verifiable randomness (VRF)

Notice how each PoS defense relies on economic punishment (slashing) or unpredictable randomness (CSPRNG/VRF) — the cryptography from earlier parts underpinning the game theory.


3.4 MEV: ordering is power too

A risk cutting across all mechanisms: MEV (Maximal Extractable Value). Whoever orders a block's transactions can insert, reorder, or censor transactions to profit — for example, "sandwiching" a user's buy order (front-run + back-run). It is an invisible tax on users and a centralizing force (whoever extracts MEV gains an advantage). Mitigations (proposer-builder separation, private mempools) are an area of active research.


Dense reference: fork-choice (LMD-GHOST/Casper), attack taxonomy, and MEV in 03-consensus and 14-incidents. End of Part II. Part III — L1 and L2 (under construction) applies all of this to real chains: Bitcoin, Ethereum, and the rollups that scale them.