On-Chain vs. Off-chain Transactions

On-chain transactions are transactions on a blockchain, where the transaction data is recorded on the blockchain itself. These transactions are considered to be transparent, secure, and irreversible. On the other hand, off-chain transactions take place outside the blockchain. These transactions are not recorded on the blockchain and are considered faster and less expensive than on-chain transactions. However, off-chain transactions are less secure and transparent than on-chain transactions. The main similarity between on-chain and off-chain transactions is that they both involve…