#newt $NEWT
I was tracing through hOw a policy check actually fits inside a transaction’s timeline and the part that bothered me wasn’t the check itself, it was the milliseconds around it.
@NewtonProtocol evaluates a transaction against an active policy before settlement. That’s the whole pitch, decision before the money moves. But a check still takes time to run, even a fast one, and the asset being checked, a price feed, a risk score, a counterparty flag, is itself a
snapshot of something that keeps changing underneath it.....
So the question I can’t fully answer yet is what happens in that narrow window..... The policy
says yes based on conditions a few hundred milliseconds old..... The transaction settles a
moment later. Markets don’t pause for the gap.
Most of the time that gap is irrelevant. Under real stress, fast price moves, a sanctions list
updating, it’s exactly the window that matters.
Pre-transaction enforcement is still a massive improvement over after the fact monitoring..... I
just don’t think before settlement means “instant” the way the phrase makes it sound.
@NewtonProtocol #Newt $NEWT
How tight does that check to settlement window need to be before it actually matters?
I was tracing through hOw a policy check actually fits inside a transaction’s timeline and the part that bothered me wasn’t the check itself, it was the milliseconds around it.
@NewtonProtocol evaluates a transaction against an active policy before settlement. That’s the whole pitch, decision before the money moves. But a check still takes time to run, even a fast one, and the asset being checked, a price feed, a risk score, a counterparty flag, is itself a
snapshot of something that keeps changing underneath it.....
So the question I can’t fully answer yet is what happens in that narrow window..... The policy
says yes based on conditions a few hundred milliseconds old..... The transaction settles a
moment later. Markets don’t pause for the gap.
Most of the time that gap is irrelevant. Under real stress, fast price moves, a sanctions list
updating, it’s exactly the window that matters.
Pre-transaction enforcement is still a massive improvement over after the fact monitoring..... I
just don’t think before settlement means “instant” the way the phrase makes it sound.
@NewtonProtocol #Newt $NEWT
How tight does that check to settlement window need to be before it actually matters?