On-chain technology refers to the processes and data that are recorded directly on the blockchain. This includes transactions, smart contracts, and other data that are immutable and transparent. The significance of on-chain data is paramount in ensuring trust and security in decentralized systems.
Benefits of On-Chain Transactions
- Transparency: All transactions are visible to anyone on the network.
- Security: Data is secured through cryptographic methods.
- Immutability: Once recorded, data cannot be altered.
These features make on-chain technology a cornerstone of blockchain applications, from cryptocurrencies to decentralized finance (DeFi).