OFF-CHAIN ​​TRANSACTION

The term refers to an operation that occurs outside the main infrastructure of a blockchain. In the context of cryptocurrencies, this implies that the transaction is carried out privately or semi-privately and is possible thanks to scalability solutions and second level layers, such as payment channels or sidechains, which allow users to carry out a series of transactions “off” the main chain before recording the results on the public blockchain. These solutions seek to alleviate the workload and reduce the commissions and confirmation times that can occur on the main chain.

Off-chain transactions are fast and efficient, making them especially useful for micropayments and high-frequency transactions, such as those found on exchanges and payment applications. However, they also involve certain risks, as the parties involved must trust that off-chain transactions will be recorded correctly and no security or confidentiality issues will occur. In case of disputes or problems, off-chain transactions can be supported by main chain consensus to resolve any conflicts.