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  1. Categories >> Software >> Cryptography >> Blockchain
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Can you explain what are off-chain transactions?

Question Posted / Shashi Sagar

Answer Posted / Shashi Sagar

Off-chain transactions, or off-chain operations, refer to transactions or computations that take place outside of the main blockchain. They help to reduce congestion on the blockchain by processing complex or frequent tasks off-chain, then only recording the final state or result on the blockchain. Examples include smart contract execution on sidechains, confidential transactions using zero-knowledge proofs, and off-chain governance mechanisms.

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