How Does the Speed of a Consensus Mechanism Impact the Viability of Decentralized Finance (DeFi) Options Trading?
Fast consensus mechanisms, which lead to high transaction throughput and low latency, are essential for DeFi options trading. Options require quick execution and settlement, especially for short-term or high-frequency strategies.
Slow mechanisms result in high slippage and poor user experience, making the platform unsuitable for competitive trading. Low transaction fees are also a result of faster processing.