In Financial Derivatives, What Is the Closest Analogue to a Blockchain Checkpoint?
The closest analogue to a blockchain checkpoint in financial derivatives is the "mark-to-market" process for margin accounts or the "guarantee fund" of a clearing house. A checkpoint establishes a point of no return for the ledger, securing past transactions.
Mark-to-market is a daily or intraday process that establishes the current value of a derivative position, ensuring that losses are realized and collateral is adjusted. Both serve as a mechanism to enforce financial integrity and prevent cascading failures by periodically confirming the state of the system.
