Settlement Layer is the layer in the blockchain that is responsible for finalizing transactions and securing their integrity. This is the main focal point in the blockchain ecosystem, ensuring that every transaction that occurs cannot be reversed or manipulated.
Function Settlement Layer di Cryptocurrency
Final Transaction Determination
One of the main functions of the Settlement Layer is to finalize transactions. This means that once a transaction enters this layer, there is no longer any possibility of canceling or changing it. This provides certainty to all parties involved in the transaction.
Transaction Security
The Settlement Layer is also responsible for securing transactions from attacks or manipulation. Using strong cryptography and consensus, this layer ensures that each transaction is properly validated before being considered valid.
Blockchain Integrity
As an integral part of the blockchain, the Settlement Layer plays a role in maintaining the integrity of the entire blockchain. By guaranteeing that incoming transactions cannot be altered or manipulated, this layer helps maintain trust in the blockchain ecosystem.
Example Settlement Layer in Cryptocurrency
Bitcoin (BTC)
Bitcoin is one of the prime examples of a blockchain that has a strong Settlement Layer. Every transaction that enters the Bitcoin network must go through a mining process that verifies and finalizes the transaction. Approved Bitcoin transactions cannot be cancelled.
Ethereum (ETH)
Ethereum also has a powerful Settlement Layer, called the Ethereum Mainnet. Every transaction processed on Ethereum must pass through a Proof of Work or Proof of Stake consensus process, which ensures its security and immutability.
Binance Smart Chain (BSC)
Binance Smart Chain is another example of a blockchain with an active Settlement Layer. Transactions processed on BSC are guaranteed by Delegated Proof of Stake consensus, which ensures the security and finality of transactions.
The Settlement Layer plays an important role in establishing the security, finality and integrity of transactions within the cryptocurrency ecosystem. Using innovative blockchain technology, this layer helps build a strong foundation for the future growth and development of cryptocurrencies. With a better understanding of this concept, users can understand more deeply how trustworthy and secure transactions in the world of cryptocurrency can be.
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DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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