Off Chain Migration

Definition ∞ Off chain migration involves moving transaction processing or data storage away from a blockchain’s main network to a secondary layer or separate system. This strategy aims to improve scalability and reduce transaction costs by handling a large volume of operations externally. Only the final settlement or summary of these operations is recorded on the main chain. It is a common approach for scaling blockchain applications.
Context ∞ Off chain migration is a prominent topic in crypto news, particularly in discussions about layer-2 scaling solutions like rollups and sidechains. Projects frequently announce initiatives to move certain functionalities off-chain to enhance user experience and reduce network congestion. The success of these migration efforts is crucial for the broader adoption of decentralized applications and digital assets.