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On-chain refers to transactions or actions that occur and are recorded directly on the blockchain. These transactions are validated by the network’s consensus mechanism and are permanently and immutably recorded on the blockchain. On-chain transactions provide transparency, security, and trustworthiness, as they are publicly verifiable and cannot be altered once recorded. However, on-chain operations can be slower and more costly than off-chain transactions due to the computational resources required for processing and the network’s capacity limits.