What Is the Main Drawback of Using Atomic Settlement for High-Frequency Trading?
The main drawback is the inherent latency and cost associated with on-chain transactions. Atomic settlement requires transactions to be confirmed on the blockchain, which can take seconds or minutes, making it too slow for the millisecond execution speeds required by high-frequency trading (HFT) strategies.
HFT typically relies on off-chain or layer-2 solutions for speed.