Settlement Protocol refers to a set of rules and procedures that govern how transactions are confirmed and settled on a blockchain network. It ensures that all parties involved in a transaction agree on its validity before it becomes part of the blockchain.When a transaction occurs, it is first broadcasted to the network. Miners or validators then verify the transaction by checking the authenticity of the digital signatures and the availability of funds. Once verified, the transaction is grouped with others into a block.After a block is created, it undergoes a consensus process where network participants agree on its accuracy. Once consensus is achieved, the block is added to the blockchain, finalizing the transactions it contains. Settlement Protocols differ based on the type of blockchain. For instance, proof-of-work and proof-of-stake employ different methods to achieve transaction finality. The choice of protocol can impact transaction speed, costs, and security, making it a crucial aspect of any blockchain ecosystem.