What Is On-Chain?
On-chain is a term used to describe transactions that take place on the blockchain. It refers to any transaction or activity that occurs directly on the blockchain, as opposed to off-chain activities which occur outside of it. On-chain transactions are recorded and stored in blocks, making them immutable and secure. This means that all data associated with an on-chain transaction can be verified by anyone who has access to the blockchain network.
The most common type of on-chain transaction is cryptocurrency transfers between two parties, but there are many other types of activities such as smart contracts, token issuance, decentralized applications (dApps), and more. All these activities require users to interact with the underlying protocol layer of a given blockchain platform in order for them to be executed successfully. As such, they must adhere strictly to its rules and regulations in order for their actions not only to be successful but also remain secure from malicious actors attempting fraud or theft.