Offchain vs Onchain together w/ their benefits

[fighter2627]

Hello there, I'm not exactly sure if  this is the right section for this topic, just let me know if it is wrong.

Now lets proceed, easily you can think of Onchain

like riding the main train line every time you make transactions it's stored in the blockchain.
Which means it's tracked, verified, and visible to everyone for instance if you transfer a cryptocurrency like Bitcoin or Solana from your wallet to someone else
The transaction will be stored on the Blockchain for public viewing and verification.

Offchain

is refers to a transaction that happens to outside the Blockchain, you can imagine two people agreeing to exchange money privately without for everyone
to verify each step of the way, but because of that there's a little less transparency, instead, they carry out the transaction in a different way, relying solely on
mutual trust.

A quick comparison:

                      Offchain                                                                                    
                                                        

• Recording: Outside the Blockchain
• Transparency: Low
• Security: Dependent on Trust
• Speed/cost: Faster & Cheaper

                      Onchain
                    

• Recording: Directly on Blockchain
• Transparency: High
• Security: Strong & Inflexible
• Speed/Cost: Slower & Expensive

Question?

• Why is onchain slower and more expensive than offchain?
• When should I use onchain over offchain?
• How is offchain safer than onchain when it is not recorded on the Blockchain itself? Doesn't it seem like it is more risky when it is not on the Blockchain?

Reference:

• What is Onchain? https://onchain.org/what-does-onchain-mean/
• What is Offchain? https://www.binance.com/en/academy/glossary/off-chain

Reminders for the newbies and simple to remember: Onchain direct on the blockchain while Offchain the record outside the Blockchain.

P.s if there is something wrong with my post, please correct me, thank you have a nice day to all

[Odohu]

Is your post to educate us to seek clarification? I'm asking because you already answered the question you raised which makes this post difficult to generate more discussion.

If I want to add something, I would say that off-chain transactions are layer 2 transaction and done inside the same ledger. Lightning network payment qualify also fall inside this category.

[joniboini]

Feels like it's better to move this into beginners board, or altcoins depending on how exactly OP wanted the discussion to be. I think some of the comparisons can be misleading since it generalize a lot of things. For example, slower and expensive for the onchain part. I don't think that's remotely true for most layer 1 network, even Bitcoin. At least the expensive part is debatable. Especially if you're referring to PoS networks and the likes of them. CMIIW.

[Mia Chloe]

~snip

If you're making a post to explain something it's actually pretty important that you ad a s much detail as possible. Your thread barely passes major information about both sides of the topic and it would make it seem kinda vague. Unless you are trying to ask a question I guess.

That being said my interest in this debate is actually the feeling difference. Normally off chain transactions like lightning were far cheaper than regular on chain ones but I strongly think that idea is gradually becoming less valid. So many upgrades have been done in the past couple of years and now fees are literally near negligible.

[Ambatman]

Off chain transactions do not inherently need trust.
Using lightning as an example
You can run a self custody with you running your nodes there by reducing the need in trusting a third party.

In summary,on chain and off-chain differs where the transaction is processed and settled.

[tabas]

The thread was moved from Bitcoin Discussion to Beginners & Help and I think it's appropriate here. Going with offchain, I think that one of the examples of it is about doing transfers inside the exchanges. Less transparency and off the record in the blockchain but, it's in the history of the accounts involved in the transfer.

Is your post to educate us to seek clarification? I'm asking because you already answered the question you raised which makes this post difficult to generate more discussion.

It's to educate as he's given the descriptions and references of his resources.

[fighter2627]

~snip

If you're making a post to explain something it's actually pretty important that you ad a s much detail as possible. Your thread barely passes major information about both sides of the topic and it would make it seem kinda vague. Unless you are trying to ask a question I guess.

That being said my interest in this debate is actually the feeling difference. Normally off chain transactions like lightning were far cheaper than regular on chain ones but I strongly think that idea is gradually becoming less valid. So many upgrades have been done in the past couple of years and now fees are literally near negligible.

You are right Madam, I forgot to put the question on this topic, due to there are some thing that I need to know and hear others view about this discussion, and with community
here like you who are already been here for  a long-time I know you can be one of the person who can give a good insight for this matter.

And also for the sake of the other community to find out their differences and how these two can give a clear benefits to each of us  here.
Good day to you Madam

[Mia Chloe]

Off chain transactions do not inherently need trust.
Using lightning as an example
You can run a self custody with you running your nodes there by reducing the need in trusting a third party.

In summary,on chain and off-chain differs where the transaction is processed and settled.

Nahhh... I don't  think so. I'm afraid the OP is actually right on that. Using a lightning channel means I'm obviously trusting a third party. And just like the debate on running your own node people barely have their own channels. This whole thing is the reason you don't use lightning for huge amounts.

Lightning transactions are usually small and trivial amounts because of this besides when the amount is bigger on chain will have approximately same transaction to fee ratio.