Offchain Scaling

Definition ∞ Offchain scaling refers to solutions that process transactions outside the main blockchain network to increase throughput and reduce fees. These methods typically aggregate multiple transactions into a single on-chain settlement, minimizing the load on the base layer. Examples include payment channels and rollups, which enhance transaction capacity without altering the core protocol. This approach preserves the security of the underlying blockchain.
Context ∞ Offchain scaling is a constant focus in cryptocurrency news, particularly concerning the growth and adoption of decentralized applications. Reports frequently cover advancements and deployments of various layer-two solutions designed to address blockchain congestion. The success of offchain scaling is crucial for achieving widespread usability of decentralized technologies.