How Does a Settlement Network Achieve “Atomic Settlement”?
Atomic settlement is achieved by ensuring that all components of a transaction, delivery of asset and payment, occur simultaneously or fail entirely. The network's off-chain ledger records the transfer of both legs, and the system guarantees that the finality of the transfer is either complete for both or incomplete for both, eliminating principal risk.
Glossar
Atomic Settlement
Execution ⎊ The simultaneous exchange of assets occurs only when all predefined conditions of a smart contract are met.
Settlement Network
Infrastructure ⎊ A Settlement Network is the specialized infrastructure, either centralized or decentralized, responsible for the final and irreversible transfer of assets and funds between transacting parties.
Off-Chain Ledger
Concept ⎊ An Off-Chain Ledger is a record of transactional activity maintained outside the primary, publicly broadcasted and validated blockchain network, typically within a private channel or sidechain.