What is transaction finality?

Created by Deepanshu Rathor, Modified on Mon, 19 Feb 2024 at 04:19 PM by Deepanshu Rathor


Here are some factors influencing finality times;

First of all, note that the L2 State goes through 3 phases; the Trusted State, the Virtual State and the Consolidated (or Verified) State.

1. Trusted State means the L2 nodes are updated with batch info from the Trusted Sequencer before the sequencing of batches and hence no data availability in L1.

2. Virtual State means the L2 nodes are updated with batch info after batches have been sequenced and the data is already in L1, but not yet verified.

3. Consolidated State means L2 nodes are updated with batch info after the sequenced batches have been verified by the Aggregator.

In other words, If the user trusts the sequencer, transactions are considered final once the sequencer sequences it. If the user trust only the L1 state, then the transaction will be final at the moment it reaches Virtual State. This means, once the data is available and the transaction is already in L1.
If the user needs to withdraw funds, the user needs to wait for the prover to convert the implicit state to explicit state, we call this last state the Consolidated or Veriefied state.

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