Definition ∞ Fast settlement refers to the rapid completion of financial transactions, where assets are exchanged and ownership is irrevocably transferred within a very short timeframe. In the context of digital assets, this typically means transactions are finalized on the blockchain within seconds or minutes, significantly reducing counterparty risk. This speed is a key advantage for high-frequency trading and real-time payment systems.
Context ∞ The pursuit of fast settlement remains a central objective for blockchain networks aiming to rival traditional payment rails and support mainstream adoption. Ongoing discussions address the trade-offs between transaction speed, security, and decentralization. Critical future developments involve scaling solutions like layer-two protocols and sharding, which aim to deliver near-instant finality without compromising network integrity.
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