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Settlement Terms: A Short Reference
Confirmed, final, settled and irreversible mean different things. The distinctions determine when it is safe to act.
| Entry type | reference |
|---|---|
| Section | glossary |
| Last verified | |
| Compiled by | Reference Desk |
Entry last verified July 2026.
The terms
Broadcast. Sent to the network, not yet in a block. Reversible by simply not being included.
Pending. In a node’s waiting set. Can still be replaced with the same nonce or evicted.
Included. In a block. Executed, and reversible if that block is discarded.
Confirmed. Included, with some number of subsequent blocks built on top. Each one makes reversal harder.
Finalised. On networks with explicit finality, past the point where reversal would require destroying a large fraction of staked collateral.
Settled. A commercial rather than a technical term. Whatever depth the receiving party requires before treating the transaction as done.
The practical distinctions
Pending is not sent. A transaction can sit pending for hours and then be evicted, in which case nothing happened and nothing was spent.
Included is not safe. A single block can be discarded in an ordinary reorganisation. This is why nobody credits on one confirmation for anything of value.
Confirmed is a spectrum. Three confirmations on a large network and three on a small one provide very different assurance, because the cost of reversal differs by orders of magnitude.
Finalised is a specific guarantee with a stated economic cost of violation, which is a stronger statement than a probability.
Why venues wait
A venue crediting a deposit is taking a risk that the transaction is reversed after crediting.
Their confirmation requirement is a risk decision, calibrated to the chain and sometimes to the amount. It is published per asset by platforms including exchanges quoting a direct fiat pair.
Comparing those thresholds across assets is a practical ranking of settlement quality made by parties with money at stake.
The one that is genuinely absolute
Once a transaction is finalised or deeply confirmed, it cannot be reversed by anyone, for any reason.
No support desk, no court order, no protocol mechanism. That property is what makes a test transaction before any large transfer the most valuable habit in this subject.
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