An on-chain transaction refers to the movement of cryptocurrency on a blockchain network. When a transaction occurs, it is recorded on the blockchain, which is a decentralized ledger that is maintained by a network of computers. This ledger is transparent and immutable, meaning that transactions cannot be altered once they have been added to the blockchain.
When a user makes a payment or transfer of cryptocurrency, it is broadcast to the network, where it is validated by nodes (computers) before being added to a block. This block is then appended to the existing blockchain, creating a permanent record of the transaction. On-chain transactions typically require a network fee to incentivize miners to include the transaction in a block.
Overall, on-chain transactions are secure, transparent, and decentralized, making them a key feature of blockchain technology. This process ensures that transactions are verified and added to the blockchain in a secure and reliable manner.
