FOUNDATIONAL TECHNOLOGY

Immutability

The property of blockchain records that makes confirmed transactions permanently and tamper-evidently recorded. No party—including the network operator—can alter or delete settled transactions.

EXAMPLE

Regulators can gain real-time, unalterable audit visibility into on-chain settlement activity without requesting reports from multiple counterparties.

Relevant Roles and Functions

On-chain Role
Smart Contract Risk & Architecture Lead
Function
Integration with Bank Systems
Operational Resiliency
Reviewing Smart Contract Design
TradFi Equivalent
Core Banking Architecture
Distributed Systems
Payments Infrastructure
Technology

Related Terms

Blockchain

A distributed, immutable ledger that records transactions across a network of computers in cryptographically linked blocks, providing a shared and tamper-resistant source of truth across multiple parties.

Example

By settling trades on blockchain, two counterparties share an identical, real-time record without requiring a central reconciliation agent.

Regulatory Reporting

The obligation to submit transaction data, positions, and risk exposures to regulators. On-chain activity can streamline reporting by making ledger data directly auditable, though it also raises new questions about jurisdiction and data access.

Example

An immutable on-chain trade record could replace post-trade reporting to DTCC, giving the SEC real-time visibility into institutional digital asset positions.

Settlement Finality

The point at which a transaction is irrevocably complete and the transferred assets are unconditionally owned by the recipient. On-chain systems can achieve near-instant finality, replacing the deferred finality of traditional clearinghouses.

Example

On-chain settlement finality eliminates the intraday credit exposures that central counterparties currently absorb on behalf of clearing members.