Crypto Settlement Times
4 days ago
- #finality
- #cryptocurrency
- #blockchain
- Cryptocurrency settlement times (time to finality) indicate how long it takes for a transaction to be verified and become irreversible on the blockchain.
- Bitcoin uses probabilistic finality, where each confirmation reduces the chance of reversal, typically requiring 6 confirmations (about 10 minutes each) for high confidence.
- Some cryptocurrencies, like Nano, use deterministic finality, where a confirmation means absolute agreement and irreversible finality.
- Settlement time differs from Transactions Per Second (TPS) and Blocks Per Second (BPS), which measure throughput and block creation rate, not finality.
- Understanding these differences is crucial for evaluating transaction security and efficiency in cryptocurrency networks.