Off-Chain
Also known as: External to Blockchain, Layer 2 Activity, Off-Ledger
Any data, transaction, or computation that occurs outside the main blockchain network.
Off-chain refers to actions, data, or transactions that occur outside the main blockchain ledger. This can include agreements, calculations, or payment channels that are later settled on-chain. Off-chain processes help scale blockchain systems by reducing on-chain load, lowering fees, and improving speed. Common off-chain implementations include state channels, sidechains, oracles, and Layer 2 rollups. Off-chain methods are often used in combination with cryptographic proofs or commitments to preserve trust and verifiability when results are eventually posted to the blockchain.