Actions or data that are directly recorded and processed on the main blockchain network. When a transaction or smart contract execution occurs “on-chain,” it means that the information is permanently and immutably stored on the blockchain ledger. On-chain actions are transparent, secure, and decentralized, and they contribute to the overall transparency and trustworthiness of blockchain networks.
Transactions or data that occur outside the main blockchain network and act as solutions designed to alleviate some of the limitations of on-chain transactions, affecting scalability and high fees.
Blockchain oracles are important in connecting blockchain networks with external data sources. They offer a bridge between the on-chain and off-chain worlds of blockchain technology and serve as third-party services that retrieve, verify, and authenticate external data. With this bridge smart contracts can utilize real-world data outside the blockchain network.