Definition ∞ On-chain money refers to digital currency or assets that exist and are transacted directly on a blockchain network. These assets derive their value and validity from the cryptographic security and distributed ledger of the underlying blockchain. Transactions involving on-chain money are recorded publicly and immutably on the distributed ledger. This differs from off-chain representations of value.
Context ∞ On-chain money is a central concept in cryptocurrency news, particularly concerning stablecoins and central bank digital currencies. A key discussion involves the benefits of transparency and censorship resistance versus the challenges of scalability and regulatory compliance. Observing the development of layer-2 solutions to improve the efficiency of on-chain transactions remains important for understanding digital asset evolution.
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