On-Chain
On-chain transactions are those that are recorded on the blockchain and shared with all of the participants. This means that they are transparent and cannot be altered without everyone’s consent.
What Is On-Chain?
A blockchain system is a network that has a distributed ledger. This ledger is shared among all of the participants in the network and is used to store transactions. Transactions that are recorded on the blockchain are done on-chain, meaning they are shared with all of the participants in the network.
Blocks are added to the blockchain as new transactions are conducted. In order for a transaction to be valid, it must follow certain consensus protocols.
On-chain transactions are transactions that happen on a blockchain and are shown on the distribution as well as the public ledger. The on-chain transactions have already been verified and authenticated by miners or authenticators. This can result in an overall update to the blockchain network itself.
On-chain transactions need to have a certain number of confirmations by the miners in order to be complete. The time it takes for an on-chain transaction to be confirmed also depends on the network congestion. Sometimes transactions are delayed if there is a large volume of transactions that need to be confirmed.
Off-chain transactions are different than on-chain transactions because they happen outside of the blockchain. This is done by using a protocol that is similar to PayPal, which allows the parties involved in the transaction to pick an agreement outside of the blockchain. The next step would involve a third party whose role is to confirm the completion of the transaction and certify that the agreement has been followed by both parties.