![Crypto Terms Glossary: What is Off-Chain? Crypto Terms Glossary: What is Off-Chain?](/img/149/987/what-is-off-chain-sm.webp)
Off-chain is a classification that refers to any type of transaction or mechanism (including governance, tokenized asset creation, consensus design, etc.) that occurs outside of a blockchain network protocol. An off-chain mechanism is typically executed outside of the actual blockchain network through other mechanisms that complement on-chain methodologies. For example, voting by a governance council or a steering committee to determine the governance structure of a blockchain ecosystem and its underlying protocol is an off-chain process.