Off-chain transactions in blockchain-based cryptocurrencies take place outside the blockchain itself. They can function utilizing a third-party or coupon-based intermediary by exchanging private keys to an existing wallet in place of transmitting money, or both.
Unlike on-chain transactions, off-chain transactions may have reduced costs, immediate settlement, and greater anonymity. However, off-chain transactions may eventually need to be recorded on-chain, depending on the technique utilized.
Since this kind of transaction takes the value out of the blockchain; there is no cost, and no miner or participant is needed to validate the transaction; off-chain transactions often
