Ledger Settlement

Definition ∞ Ledger settlement denotes the final and irreversible recording of a transaction on a distributed ledger, such as a blockchain. This process confirms the transfer of ownership or value, making the transaction immutable and publicly verifiable. Once a transaction reaches ledger settlement, it cannot be altered or reversed, providing finality to the transfer. This concept is fundamental to the integrity and trustlessness of blockchain systems.
Context ∞ In the realm of digital assets, the speed and finality of ledger settlement are critical topics in discussions about scalability and payment efficiency. Different blockchain protocols offer varying degrees of settlement finality, influencing their suitability for different applications. News often reports on advancements in layer-2 solutions or new consensus mechanisms designed to accelerate settlement times without compromising security. The efficiency of ledger settlement is a key factor in the systemic adoption of blockchain technology for global financial transactions.