The Perpetual Blockchain Governance Debate

Blockchain technology has been transforming the whole system of digitalization across industries. The main benefit of blockchain offerings is to have a lease on the transparency of transactions for both the beneficiary and the grantee. Organizations in the recent age have been managing data for blockchain-based solutions either as on-chain or off-chain as storage mechanisms. This can be implemented as storing data in a private or publicly accessible service blockchain service. Off-chain does not necessarily mean “not on the blockchain,” it basically means that it’s not on a publicly accessible service. Just like any organization would not store their data on a publicly accessible database or directory, off-chain storage means that the data is not publicly accessible. If you apply these concepts to a traditional cloud service, it would be very similar to a public cloud versus private cloud.

In my experience, off-chain transactions bring huge value as they have increased security and are also not bound by the transactional speed limitations that on-chain transactions have. In a typical on-chain transaction each transaction would need to be confirmed by all nodes on the chain before the transaction is marked completed, and this makes it very slow, whereas on an off-chain transaction does not need to wait for all the nodes to confirm the transaction before its marked as complete or successful. Since off-chain systems are not public internet-facing its more secure — it’s very similar to the security you would attain by installing a server or a piece of software within your intranet as opposed to the internet.

On-Chain Transaction: These transactions are valid when transacted on the public ledger. They involve many participants verifying transactions and the validations signatures from all participants need to be an exact match in order for that transaction to be considered valid. While the specifics of each transaction are published on the public blockchain for…

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