Off-chain scaling involves moving transactions or processes away from the main blockchain to reduce congestion and improve performance. Examples include sidechains and state channels.
Cardano uses off-chain state channels for scalability with peer-to-peer communication, cryptographic commitments, and dispute resolution for off-chain transactions.
Ouroboros is Cardano's Proof of Stake consensus algorithm, ensuring decentralization, scalability, and security through randomly chosen slot leaders.
On-chain refers to transactions or processes that occur directly on the blockchain network.
Off-chain refers to transactions or processes that occur outside of the main blockchain network.
On-chain scaling involves making changes to the base layer of a blockchain to increase its capacity and performance.
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