What Is the Role of “Delivery” in a Traditional Futures Contract versus the Cash Settlement of a Perpetual Future?

A traditional futures contract typically involves "physical delivery," where the actual underlying asset (e.g. barrels of oil, bushels of corn) is exchanged at expiration. In the crypto space, some traditional futures are cash-settled, meaning the difference in value is paid in cash.

Perpetual futures are always "cash-settled," meaning that at closure or liquidation, the difference in P&L is paid in the settlement stablecoin, and no actual underlying cryptocurrency is ever exchanged.