A metric space is complete if every Cauchy sequence in it converges to a point of that space. The stated shrinking-set characterization is the Cantor intersection theorem together with its converse.
First assume completeness, and choose . If , then both points belong to , so . The vanishing diameters imply that is a Cauchy sequence, hence it converges to some . For every fixed , its tail belongs to the closed set , so . Thus . In fact the intersection contains only one point, since any two of its points have distance at most every diameter.
Conversely assume the stated intersection property and let be a Cauchy sequence. Put
These closures are nonempty, closed and nested. Taking a closure does not increase the diameter: approximate two points of the closure by points of the set and use continuity of distance. The Cauchy sequence therefore makes . Choose in the intersection. For , both and belong to , and . Every Cauchy sequence converges in , proving completeness.

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