Preconfirmations

Inclusion and execution preconfirmations are essential mechanisms in blockchain transaction management, each serving distinct roles to enhance transaction reliability and trust. Inclusion preconfirmations ensure that a transaction will be incorporated into the blockchain, offering a preliminary guarantee that the transaction will occupy a block. This mechanism primarily focuses on the transaction's entry into the block and may involve conditions such as block space availability, transaction fees, or ordering.

In contrast, execution preconfirmations provide assurances that a transaction will not only be included but also guarantee the settlement outcome once executed and included on chain.

Both preconfirmation types leverage various economic incentives and penalties, such as collateral, insurance or slashing, to uphold their guarantees and mitigate associated risks.

graph TD
    subgraph "Preconfirmation Flow"
        A[Transaction Submitted] --> B{Preconfirmation Type?};
        B --> C[Inclusion Preconfirmation];
        B --> D[Execution Preconfirmation];
        C --> E{Guaranteed Inclusion};
        D --> F{Guaranteed Execution};
    end

    style A fill:#e1f5fe,stroke:#333,stroke-width:2px;
    style B fill:#fff9c4,stroke:#333,stroke-width:2px;
    style C fill:#c8e6c9,stroke:#333,stroke-width:2px;
    style D fill:#f8bbd0,stroke:#333,stroke-width:2px;
    style E fill:#c8e6c9,stroke:#333,stroke-width:2px;
    style F fill:#f8bbd0,stroke:#333,stroke-width:2px;

Inclusion Pre-confirmations

• Definition: Pre-confirmation that a transaction will be included in a block.
• Focus: Ensuring that a transaction makes it into the blockchain.
• Guarantees: Guarantees inclusion in the blockchain.
• Verification: Typically requires less intensive verification.
• Examples of Mechanisms: Optimistic Pre-confirmations, Pessimistic Pre-confirmations.
• Conditions: May involve conditions related to block space, fees, or order.
• Economic Incentives: May involve collateral or slashing for not including transactions.

Execution Pre-confirmations

• Definition: Pre-confirmation that a transaction will be executed once included.
• Focus: Ensuring that a transaction is executed correctly and without issues.
• Guarantees: Guarantees settlement of execution of the transaction.
• Verification: May require more intensive verification to ensure execution correctness.
• Examples of Mechanisms: Validity-based Pre-confirmations, Unconditional Pre-confirmations.
• Conditions: May involve conditions related to the state, computational resources, or correctness.
• Economic Incentives: May involve economic penalties for failed execution.

Exotic Preconfirmations and Where NOT to find them

Pre-confirmation Mechanism Matrix

This table summarizes the key aspects of each pre-confirmation mechanism, highlighting their descriptions, verification methods, conditions or incentives, and roles or implementations involved.