Off-Chain
Layer 2● Common
Transactions or data stored outside the Bitcoin blockchain. Includes Lightning payments, sidechain transactions, and Layer 2 activity. Reduces on-chain congestion and fees while leveraging Bitcoin's security for final settlement.
Technical Notes
Lightning: payments via channel updates, only open/close on-chain. Liquid: federated sidechain with separate block space. Trade-offs: different security assumptions, may require online presence, counterparty considerations. On-chain settlement remains final arbiter.
Metadata
Visibility: Public
Created:1/3/2026by System