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Off-Chain

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Table of contents
    1. 0.2. How Off-Chain Works
    2. 0.4. Why Off-Chain Matters

Off-chain refers to any transaction, data, or activity that occurs outside the blockchain but can still relate to it. These actions aren’t recorded on the main ledger and don’t require on-chain confirmation.

How Off-Chain Works

Off-chain transactions can happen directly between users or through third-party platforms. They often involve moving assets, processing data, or executing agreements without triggering a blockchain transaction. Once conditions are met, results may later be settled or verified on-chain, if needed.

Why Off-Chain Matters

Off-chain solutions reduce blockchain congestion, lower fees, and improve transaction speed. They’re crucial for scaling networks, especially in high-volume applications like payments, gaming, or Layer 2 systems. However, they may rely on trust assumptions or intermediaries, depending on implementation.