Off-Chain cryptocurrency transactions refer to blockchain transactions that happen off of the primary chain, sometimes called the Layer 1 chain. An example off chain transaction might be a person giving a private key pair of a non-empty Bitcoin wallet to another person. In this scenario, the new owner of the key pair now owns and has access to the wallet and Its associated Bitcoin. This scenario of the private key swap off chain transaction has zero Bitcoin network fees, immediate settlement with no Bitcoin network transaction verifications required, and a higher level of privacy since there is no blockchain transactions occurred.
NFT Term
Off-Chain
Definition of Off-Chain from the NFTguild.com glossary.
