Swap Settlement Latency

Swap Settlement Latency is the duration between the initiation of an atomic swap and the final confirmation of the exchange on both participating blockchains. Because atomic swaps involve multiple transactions on different networks, the total time can be significant.

High latency increases the risk of market volatility affecting the value of the assets being swapped during the process. If the market moves drastically, one party might choose to let the swap expire rather than complete it, leading to a failed trade.

Minimizing this latency requires fast block times and efficient coordination between the two chains. It is a key metric for evaluating the user experience and reliability of cross-chain trading platforms.