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Glossary

On-Chain

1 min read

On-chain is a term used to describe any data that is registered on the Bitcoin blockchain, in contrast with off-chain data, which is not stored on the blockchain. On-chain data are always Bitcoin transactions, while off-chain data can be an unconfirmed Bitcoin transaction or any other type of data.

Related Terms
Blockchain
A blockchain is a chronological list of records, called blocks. Each of these blocks contains transactions. Once a block is added to the blockchain, it is infeasible to alter, giving Bitcoin its immutability.
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Off-Chain
Off-chain is a term used to describe any data that is not registered on the Bitcoin blockchain. Bitcoin transactions on other layers, including the Lightning Network, are off-chain transactions. Off-chain transactions are usually quicker and cheaper than on-chain transactions.
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Transaction
A transaction exists as a record of the transfer of bitcoin from one address to another. All transactions are recorded in blocks on the blockchain.
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