What is On-Chain?
Let's find out On-Chain meaning, definition in crypto, what is On-Chain, and all other detailed facts.
On-chain transactions are completed and recorded directly on the main blockchain and shared with the rest of the network participants. The blockchain network is a distributed ledger that acts as a shared decentralized database.
Each new on-chain transaction has to be verified and written in a block using consensus algorithms. If the transaction data is considered valid, the new block is added to the end of the chain.
On-chain transactions that are logged in the blockchain can also be viewed on the distribution and public ledgers of the network. On-chain transactions have to be validated and authenticated by miners, validators, or other entities assigned to verify transaction data.
The miners must reach an agreed number of confirmations before an on-chain transaction can be confirmed. This process takes time and may be delayed due to network congestion or due to an increased volume of transactions needing confirmation.
On-chain transactions differ from off-chain transactions, which use a second-layer protocol and are not recorded on the main blockchain. Off-chain transactions can be completed faster and with lower transaction costs than on-chain before they are finalized and sent to the blockchain network for validation.