On-chain transactions are cryptocurrency transactions that take place on the blockchain and are validated by the state of the network. Only when the blockchain has been updated to reflect the transactions on the public ledger are on-chain transactions considered genuine.
Because they can’t be changed once they’ve been validated and logged on the network, on-chain transactions provide security and transparency. On-chain transactions, on the other hand, have some disadvantages, such as higher fees and slower processing times. The verification method of the blockchain influences the speed of on-chain transactions.
Off-chain transactions, on the other hand, take place outside of the blockchain network and may have lower costs, faster settlement, and more anonymity than on-chain transactions.