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  1. Home
  2. /Glossary
  3. /Off-Chain
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blockchain

Off-Chain

Transactions or data stored outside the main blockchain.

Definition

Transactions or data stored outside the main blockchain. Off-chain solutions reduce fees and increase speed by handling things elsewhere, then settling periodically on-chain. Layer 2s and sidechains are off-chain scaling approaches.

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Related Terms

On-Chain

Transactions and data recorded directly on the blockchain.

Layer 2

A secondary network built on top of a Layer 1 to improve scalability.

Scalability

A blockchain's ability to handle increasing transaction volume without degrading performance or raising fees.

ABI

Application Binary Interface.

Account Abstraction

A way to make crypto wallets behave more like normal apps by turning every account into a smart contract.

ERC-4337

The Ethereum standard for account abstraction without changing the core protocol.

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