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On-Chain Mechanism

Definition

An on-chain mechanism refers to a function or process executed directly on a blockchain’s native layer, with its logic and state changes recorded immutably on the distributed ledger. These mechanisms are governed by smart contracts or the protocol’s core rules, ensuring transparency and tamper-resistance. They handle critical operations such as transaction validation, token transfers, and protocol governance. The execution of these mechanisms is verifiable by all network participants. This approach leverages the inherent security properties of the blockchain.