Definition ∞ Off Chain Data Storage involves storing data externally from the main blockchain ledger. This method is used to reduce the computational and storage load on the primary chain. While the bulk of the data resides off-chain, a cryptographic hash or proof of its integrity is typically maintained on the blockchain. This approach optimizes performance and reduces transaction costs.
Context ∞ This is a common strategy for scaling blockchain applications and managing large datasets more efficiently. It introduces considerations regarding data availability, censorship resistance, and the security of the chosen off-chain storage solution. The balance between on-chain security guarantees and off-chain scalability remains a key design challenge.
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