Off-Chain

The term “off-chain” refers to transactions or mechanisms that occur outside the protocols of a blockchain network. This classification encompasses various activities such as governance processes, tokenized asset creation, and consensus design. Typically, off-chain mechanisms complement on-chain methodologies and are executed through alternate channels. For instance, off-chain governance involves face-to-face voting by interrelated participants to determine the direction and rules of an on-chain protocol and the overall blockchain ecosystem.