On-chain settlement refers to the process of recording transactions directly on the blockchain. Each transaction is verified by network participants (nodes) and added to the distributed ledger, ensuring transparency and security.When a transaction is settled on-chain, it becomes immutable, meaning it cannot be altered or removed. This enhances trust among users, as they can independently verify the transaction history.On-chain settlement typically involves higher fees and longer processing times compared to off-chain methods, where transactions occur outside the main blockchain. However, it guarantees a higher level of security and finality, making it ideal for larger transactions or contracts that require thorough validation.Using on-chain settlement can also help maintain regulatory compliance by providing a clear and auditable record of transactions. As blockchain technology evolves, the balance between on-chain and off-chain methods will continue to be an important consideration for users and developers.