Settlement

Settlement is the process by which a transaction is finalised and ownership of an asset or funds is conclusively transferred between parties. In crypto, settlement often refers to a transaction being confirmed and effectively irreversible on a blockchain, though the degree of finality depends on the network’s design. Traditional finance may separate trade execution from later settlement, sometimes taking days, whereas some blockchains settle within minutes.

A common misconception is that a transaction is settled the moment it is broadcast; until enough confirmations occur, it may still be reversed or dropped. Finality rules vary across networks. This entry is educational.