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What is Off-Chain?

Crypto Terms Glossary: What is Off-Chain?

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.

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