Tokenomics & On-chain

What is the difference between on-chain and off-chain transactions?

An on-chain transaction is recorded and settled directly on the blockchain ledger, visible to anyone and confirmed by the network; an off-chain transaction happens outside the ledger and is settled later or tracked privately. The difference is where settlement and the record live. For example, sending crypto wallet-to-wallet is on-chain, while trades inside an exchange's internal books are off-chain until withdrawal. On-chain transactions offer public verifiability and finality; off-chain ones can be faster and cheaper but rely on a trusted intermediary's records.