What are Settlement Systems?
Settlement Systems in web3 refer to tools and services that finalize and record transactions or asset transfers on a blockchain or distributed ledger. These systems ensure that trades, payments, or exchanges are completed securely, transparently, and immutably. Tools in this category include on-chain settlement protocols, atomic swap mechanisms, clearinghouses, and transaction finality services. The primary users are developers building decentralized exchanges, payment platforms, and financial applications that require reliable transaction completion and dispute resolution. Key characteristics of Settlement Systems include strong guarantees of transaction finality, resistance to double-spending, and integration with smart contracts or off-chain components. Related categories include Payments, which focus on transaction initiation and processing, and Interoperability, which deals with cross-chain asset transfers. Developers should look for Settlement Systems tools when they need to ensure that transactions are conclusively recorded and irreversible, especially in financial or asset exchange contexts.