What Is “Atomic Settlement” and Why Is It Important for Smart Contract Derivatives?

Atomic settlement refers to a transaction that either fully completes all its intended steps or completely fails, with no intermediate state possible. In derivatives, this ensures that the asset transfer and the corresponding payment occur simultaneously and irrevocably.

This eliminates counterparty risk and the need for a clearing house to guarantee the trade, as the smart contract itself guarantees the "all or nothing" execution.