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.
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.