The Settlement Layer refers to the fundamental layer of a blockchain network that validates and records transactions. It’s where transactions are confirmed, ensuring that ownership of assets is accurate and reliable.In many systems, the Settlement Layer handles the finality of transactions. Once a transaction is confirmed on this layer, it is considered irreversible. This layer typically uses consensus mechanisms, such as proof-of-work or proof-of-stake, to maintain security and integrity.By separating the Settlement Layer from other layers, such as the Application Layer, systems can enhance scalability and improve transaction speeds. This layered approach allows for additional functionalities and features without burdening the core layer responsible for maintaining transaction integrity.Overall, the Settlement Layer plays a crucial role in ensuring that transactions are handled securely and efficiently while enabling the development of more complex applications on top of it.