Definition ∞ Blockchain settlement is the final confirmation and recording of a transaction on a distributed ledger. This process signifies the irreversible transfer of ownership or value between parties. Once a transaction reaches finality on the blockchain, it cannot be altered or reversed, providing a high degree of certainty. This immutable characteristic is fundamental to the trustless nature of blockchain systems.
Context ∞ The efficiency and finality of blockchain settlement are central to discussions about the scalability and usability of blockchain networks for financial applications. Developments in consensus mechanisms and layer-two solutions are continually being assessed for their ability to expedite settlement times and reduce associated costs. The increasing adoption of blockchain for traditional financial processes, such as securities trading and interbank transfers, places a premium on robust and rapid settlement finality.
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