Instant Settlement Network Layer

An instant settlement network layer is a broad term for the part of a payment or blockchain system that settles transfers almost immediately, so that funds are final and usable within seconds rather than after a batch run or a long wait for confirmations. In banking, the idea is delivered by real-time payment schemes such as Faster Payments in the United Kingdom, supported by central bank settlement systems. In crypto, it can describe a blockchain with fast settlement finality, or a second layer such as a payment channel network that lets parties exchange value instantly and settle on the main chain later. The term has no single technical definition, and some projects use it in marketing, so it is worth checking what "instant" and "final" actually mean in each case, including who bears the settlement risk if something goes wrong. Also see settlement systems.