LPFMI: The importance of blockchain technology to settle finality

Financial market infrastructures (FMIs) play a key role in enabling financial operations, covering the clearing and settlement of payments, currencies and other financial transactions or instruments by centralizing these functions and helping to protect participants from the financial risks that can arise during transactions.
Settlement finality is reached when the account of the recipient in a payment system has been credited irrevocably and unconditionally.
One of the key characteristics of a blockchain is the fact that transactions cannot be reversed or altered. Once data is written into the history, it’s there for good. In blockchain terms, finality is reached when you can be sure that whatever transaction you have submitted will stay there for good.
The webinar will focus on two papers: Berndsen, R. J. (2013): Toward a uniform functional model of the financial infrastructurep in The Journal of Financial Market Infrastructures. Vol: 2., Issue: 2, p. 77-108 and Berndsen, R. J. – Wandhofer, R. (2019): Proof-of-work blockchains and settlement finality: a functional interpretation In The Journal of Financial Market Infrastructures. Vol: 7., Issue: 4., p. 71-104