Off-Chain Execution refers to the processing of transactions or computations that occur outside of a primary blockchain network. These operations are often conducted on secondary layers or sidechains to improve scalability, reduce transaction fees, and increase transaction throughput. The results of off-chain activities are typically settled or anchored back to the main blockchain periodically. This approach is vital for enabling high-frequency trading and complex operations without burdening the core ledger.
Context
The ongoing development and adoption of off-chain execution solutions are central to addressing the scalability limitations of many blockchain protocols. Current research and implementation focus on optimizing speed, security, and user experience for these secondary systems. Debates often arise concerning the security models and trust assumptions inherent in different off-chain execution methods.
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