What are the differences between on-chain and off-chain crypto transactions?

3 answers

• Nov 27, 2021 · 3 years ago
  On-chain crypto transactions refer to transactions that are recorded directly on the blockchain. These transactions are public, transparent, and permanent. Off-chain crypto transactions, on the other hand, occur outside of the blockchain and are not immediately recorded. They are usually faster and cheaper, but may involve some level of trust in third-party intermediaries.
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• Nov 27, 2021 · 3 years ago
  When it comes to on-chain transactions, think of it as sending money directly from your bank account to another person's bank account. It's a direct transfer that is recorded and verified by the entire network. Off-chain transactions, on the other hand, are more like sending money through a payment app. It's faster and doesn't require the entire network to verify each transaction, but it does introduce some level of centralization and trust in the payment app provider.
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• Nov 27, 2021 · 3 years ago
  At BYDFi, we believe in the power of on-chain transactions. By recording transactions directly on the blockchain, we ensure transparency and security. Off-chain transactions may have their benefits, but they also introduce potential risks and vulnerabilities. That's why we prioritize on-chain transactions for the safety of our users' funds.
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