Definition ∞ A settlement layer is a blockchain or system where final transactions are recorded and confirmed. It serves as the ultimate source of truth for asset ownership and transfers, ensuring the immutability and finality of financial operations. This layer is distinct from faster, off-chain or layer-two solutions that may process transactions more rapidly but ultimately rely on the settlement layer for final validation.
Context ∞ The ongoing development of settlement layers is critical for scaling blockchain networks and improving transaction throughput. Discussions often revolve around the trade-offs between security, speed, and decentralization in different settlement designs. Key developments to watch include the adoption of new consensus mechanisms and sharding technologies that aim to enhance the capacity of base layers.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
