A State Channel is a type of Ethereum blockchain layer 2 scaling solution which allows participants to perform private transactions off-chain. Ethereum state channel transactions are non-public and are only visible to other participants in the channel. When the transaction is complete, both the initial and final state of the transactions are recorded on the main Ethereum Mainnet Layer 1 chain.
NFT Term
State Channels
Definition of State Channels from the NFTguild.com glossary.

