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For information and learning only. Not investment advice. Crypto assets involve risk.

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Glossary

Terms16 shown

RWARepresenting ownership of off-chain assets such as government bonds, real estate, or commodities in the form of blockchain tokens.
RollupsA scaling solution that bundles multiple off-chain transactions and submits compressed data or cryptographic proofs to the main chain.
State ChannelA bidirectional communication mechanism that enables participants to update their shared state directly off-chain, relying on blockchain settlement only at stages such as opening and closing.
State channelsA scheme that allows participants to conduct multiple off-chain transactions, recording only the channel-opening and channel-closing states on the main chain.
ValidiumA type of rollup that processes transactions off-chain, relies on a proof-of-stake validator network, and submits data to Layer 1.
off-chainIndicates that interactions or status updates are completed privately between participants rather than being recorded individually on the underlying blockchain.
Token URIA link stored by the token, used to point to an off-chain metadata file.
Traditional NFTTokens typically minted on smart contract-enabled blockchains to represent digital items and potentially link to off-chain metadata.
Payment channelAn off-chain transaction channel established between participants; transaction results are settled on the main blockchain only when the channel is closed.
Data Availability Layer (DAL)A dedicated storage solution that separates data availability assurance from blockchain operations such as transaction execution, usable on-chain or off-chain.
State ChannelAllows participants to conduct multiple transactions off-chain, with balance states typically recorded on the main chain only when the channel is opened and closed.
Off-chainRefers to transactions or processes that occur outside the main blockchain network, typically recording only the final settlement result on the underlying blockchain.
Off-chain transactionA transaction in which value is transferred through third-party escrow or other off-chain mechanisms, with only the final balance state recorded on the blockchain.
Off-chain metadataMetadata stored outside the blockchain and pointed to by a link in the token.
Off-chain verificationThe process by which a backend server verifies outside the blockchain whether a deposit transaction and related messages are valid.
Lightning networkA Layer 2 solution in the Bitcoin ecosystem that uses state channels to process multiple transactions off-chain, typically recording only channel openings and closures on the Bitcoin blockchain.

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Definition

Off-chain transaction

A transaction in which value is transferred through third-party escrow or other off-chain mechanisms, with only the final balance state recorded on the blockchain.

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