An On-Chain Execution Layer is the fundamental component within a blockchain architecture responsible for processing and validating transactions and smart contract logic directly on the main network. This layer ensures that all computations and state changes are recorded immutably and transparently on the distributed ledger. It effectively represents the core processing engine and computational environment of the blockchain system.
Context
The efficiency and overall capacity of the on-chain execution layer are critical determinants of a blockchain’s scalability and its general performance under load. Debates frequently center on optimizing this layer through various technical upgrades, such as sharding, optimistic rollups, or improved virtual machine designs, to accommodate increasing network demand and transaction volume.
The AutoFi Stack transforms reactive DeFi into a proactive system, enabling complex, zero-delay strategies and establishing a new standard for capital efficiency.
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