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What is the difference between off-chain transactions and on-chain transactions?

What is the difference between off-chain transactions and on-chain transactions?



Asked On2022-06-22 17:34:13 by:manastaneja

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On-chain transaction:-They are transactions that occur on the blockchain. These transactions are stored on the distributed ledger and visible to anyone who has a copy of the ledger. Therefore, every time an on-chain transaction occurs, it leads to an update of the overall blockchain network.

Off-chain transaction:-Off-chain transactions are processed outside the blockchain. They involve a third party that plays the role of a guarantor. The transacting parties enter an agreement outside the blockchain. However, they depend on a third party to facilitate the execution of the agreement. The third party sets the terms and conditions of the agreement. The transaction is executed and recorded on the blockchain when all the terms are met.

Answerd on:2022-06-23 Answerd By:suman

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