High Throughput Settlement

High Throughput Settlement refers to the ability of a blockchain or trading venue to process a large volume of financial transactions per second with immediate or near-immediate finality. For derivatives, this is necessary to manage liquidations, margin calls, and rapid price adjustments in real-time.

Without high throughput, the system would become congested during market spikes, leading to potential insolvency for participants. Achieving this involves scaling solutions like layer-two networks or optimized consensus protocols.

It is the primary bottleneck for the mass adoption of decentralized derivative exchanges.