Sub Second Settlement

Definition ∞ Sub Second Settlement refers to the ability of a payment system or blockchain network to finalize transactions within a fraction of a second. This rapid completion ensures that funds are irrevocably transferred and available for use almost instantaneously. It is a critical feature for high-frequency trading, retail payments, and other applications demanding extreme speed. Achieving sub-second settlement is a major goal for many next-generation blockchain protocols.
Context ∞ Sub second settlement is a primary performance target for many new blockchain and Layer 2 solutions seeking to rival traditional payment networks. News frequently highlights advancements in consensus mechanisms and scaling technologies that promise to deliver this speed. The pursuit of near-instant finality remains a significant driver of innovation in the digital asset infrastructure space.