Blockchains are clearing layers

To understand why Symmio matters, its important to understand the nature of clearing.

Blockchains can be seen abstractly as instantly settled clearing layers.

It is instructive to consider a conceptual framework in which the activity of trading functions as a form of lending or swapping, and more generally, as a system that must facilitate the clearing of various financial positions.

In such a context, Ethereum and other blockchains can be regarded as clearing layers. The same observation extends to Solana and, with some interpretation, even to Bitcoin. Each blockchain, at its core, can be understood as a mechanism that maintains balances and periodically clears obligations between participants. The distinguishing factor between a dedicated clearing layer and a blockchain like Bitcoin is that on Bitcoin’s base layer (L1), the settlement of every transaction occurs immediately and in a fully transparent manner.

The introduction of protocols on top of Bitcoin or other blockchains, including the concept of state channels, illustrates how not all clearing frameworks must be blockchains themselves. State channels, which were proposed early in the development of blockchain technology, represent a way to move the actual clearing of balances off the main chain and into a deferred "in the future" setting.

By design, these second-layer systems handle a series of transactions privately, updating off-chain balances over time, and eventually settling the net outcome back on the blockchain at a later date. Such approaches were considered even in the early years of Bitcoin. Satoshi Nakamoto’s initial concepts and subsequent community-driven research revealed a recognized necessity for scalable, layered solutions.

Scalability forms the fundamental impetus behind the creation of secondary clearing layers. A global population of billions cannot directly interact with a base-layer blockchain like Bitcoin or Ethereum under current technological and economic constraints. These networks process only a limited number of transactions per block. Even with optimizations, the volume remains too small to handle global-scale transactional loads. This shortfall becomes particularly evident when acknowledging that billions of individuals cannot all write their transactions onto Bitcoin’s chain at ten-minute intervals with only 5000 transactions available in a block, paying for being one of the first to be settled means the system would become prohibitively expensive, congested, or both.

Efforts to increase throughput at the base layer have included adjustments to consensus algorithms, attempts at centralization, and the strategic co-location of nodes to reduce network latency. However, these approaches, while potentially increasing throughput marginally, do not address the core structural limits. Instead, a design philosophy has emerged in which a strong and stable layer-one blockchain serves as a settlement anchor, while higher layers, side-chains, state channels, and rollups handle the bulk of transactional ordering activity. The Ethereum roadmap exemplifies this approach, placing significant emphasis on creating robust L1 security and correctness, complemented by a wide ecosystem of layer-two (L2) solutions that aggregate and compress large volumes of off-chain transactions.

Blockchains have become the standard of instantly settled clearing. Symmio's vision is to become the standard for future settled clearing.

How can a global clearing layer for future settlement be scalable enough? Intents vs Orderbooks