Definition ∞ An on-chain settlement layer is the fundamental blockchain layer where the final and irreversible recording of transactions occurs. This layer serves as the ultimate source of truth for all network activities, providing cryptographic security and immutability for digital asset ownership and transfers. It forms the base for all subsequent layer-2 scaling solutions.
Context ∞ The on-chain settlement layer is paramount for the security and integrity of any blockchain network, ensuring the finality of transactions. A key discussion involves optimizing this layer for efficiency without compromising its core security guarantees. Future developments often focus on enhancing its capacity to support higher transaction volumes while maintaining decentralization and resistance to censorship.