Settlement Speed

Definition ∞ Settlement speed refers to the time it takes for a transaction to be finalized and for assets to be transferred definitively between parties. In traditional finance, this can take days. Blockchain technology, particularly with cryptocurrencies, often offers significantly faster settlement times, sometimes near-instantaneous, enhancing efficiency.
Context ∞ The enhanced settlement speed offered by many blockchain networks is a key advantage driving interest in digital assets for cross-border payments and real-time gross settlement systems. Traditional financial institutions are exploring distributed ledger technology to reduce latency and operational costs in their transaction processing. Discussions in crypto news often compare the efficiency of various blockchain protocols in achieving rapid and secure finality.