On-Chain Funds

Definition ∞ On-chain funds represent assets that are directly held and transacted on a blockchain ledger. These funds are verifiable and transparent, with their movement recorded immutably within the distributed ledger. This contrasts with off-chain assets, whose ownership and transactions may be managed by intermediaries and are not directly visible on the blockchain.
Context ∞ The tracking and analysis of on-chain funds are central to blockchain analytics and security. News reports often detail the movement of significant amounts of cryptocurrency between wallets, providing insights into market sentiment, potential illicit activities, or the flow of capital into and out of specific protocols. The transparency of on-chain funds allows for granular examination of digital asset flows.