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On-Chain Meaning

Refers to transactions or activities that are recorded directly on the main blockchain ledger and verified by the network's consensus mechanism. An on-chain transaction is immutable, transparent, and irreversible once confirmed.

On-chain data is the source of truth. Analysts use "On-Chain Analysis" to track whale movements, exchange reserves, and miner activity.

Because public blockchains are open ledgers, on-chain activity provides a level of market transparency that does not exist in traditional finance. The limitation of on-chain activity is scalability.

Block space is scarce. As demand for on-chain storage grows, fees rise.

This economic pressure pushes smaller transactions off-chain, reserving the on-chain layer for high-value settlements and security anchoring.

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