Onchain

Unlike offchain processes, which happen outside the blockchain and require manual input to bring data onto the chain, onchain activities are transparent and permanently stored on the decentralized ledger.

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The term "Onchain" is the Web3 equivalent of "Online," referring to any activity that occurs directly on the blockchain.

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Onchain operations are fundamental to blockchain ecosystems, encompassing each transaction, smart contract execution, or asset transfer that takes place. These actions are automatically recorded in a block, which is subsequently validated by the network's nodes. This process creates an immutable and verifiable history of events.

For example, when someone transfers Bitcoin, the transaction is processed, confirmed by the Bitcoin network, and stored onchain. All network participants can view the transaction, adding transparency and trust. Onchain mechanisms are crucial for the integrity of decentralized finance (DeFi), ensuring transactions are secure and verifiable by anyone.