Settlement Layer: Finalizing Transactions in Blockchain
Settlement layer is the layer on which the entire ecosystem is based.
What is a Settlement Layer?
The settlement layer is the layer that anchors the entire ecosystem and establishes uncontested security and objective finality in the event that something requiring arbitration occurs on another blockchain.
The settlement layer signifies that the payment is considered final and executed. A payment from a credit card, such as MasterCard or Visa, is not a settlement because the settlement occurs weeks or months later. In the cryptocurrency world, a transaction becomes a settlement as soon as it is stored on a blockchain.
No matter which blockchain or protocol becomes the foundation of the ecosystem, it is the one that ensures security, stability and confidence in supporting the entire ecosystem. Basic settlement is incorruptible, always available, sustainable and engaged only as an arbiter.