Ondo Finance is deploying its tokenized U.S. Treasury fund, OUSG, on the XRP Ledger (XRPL) within six months, expanding institutional access to tokenized real-world assets. 

Daily Top Performer — Movement Labs (MOVE)

The S&P 500 rose 0.92%, rebounding ahead of the Fed’s rate decision. Gold climbed 0.8% to $2,762.02 as tariff uncertainties boosted safe-haven demand. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 0.32%, with Bitcoin and Ether dropping by 0.20% and 3.40%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is MOVE, which surged nearly 17.7% following the launch of Movement Network's Developer Mainnet, paving the way for the Public Beta.

Movement Labs (MOVE), founded in 2023, is a modular blockchain network powered by the Move language, aiming to enhance security, performance, and UX in decentralized networks. Its key products include Movement SDK, the M1 Layer 1 network, and M2, an Ethereum Layer 2 rollup. 

, allowing select developers to deploy apps and access new infrastructure. This phase builds on the Mainnet Beta and will run until mid-February. The next phase, Public Mainnet Beta, will introduce full permissionless app deployment and user onboarding. Movement Network is built for modularity, leveraging Celestia.

Check Out the Latest Prices, Charts, and Data of 

 its tokenized U.S. Treasury fund, OUSG, on the XRP Ledger (XRPL) within six months, expanding institutional access to tokenized real-world assets. Backed by BlackRock’s BUIDL fund, OUSG offers 24/7 minting and redemption via Ripple’s RLUSD stablecoin, enhancing liquidity and financial flexibility. The integration leverages XRPL’s institutional-grade infrastructure, compliance tools, and deep financial relationships to bridge DeFi and traditional finance, positioning XRPL as a key hub for tokenized assets.

BTC Spot ETFs saw a net outflow of $11.7 million, with no change in GBTC and all outflows from non-GBTC funds.

" quest is now live on Galxe, offering tasks to earn points that may be useful for a future airdrop. Participants can complete onchain transactions, explore dApps, join social activities, and more. Week 1 is already underway!

Beginner

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Ondo Finance Brings Tokenized U.S. Treasuries to XRP Ledger for Institutional DeFi

Altura (ALU) is a web3 gaming platform revolutionizing gaming with smart NFTs, AI-powered tools, and seamless blockchain integration for developers and gamers alike.

Over the years, the multibillion dollar gaming industry has undergone a significant shift with the emergence of 

 continues to revolutionize the way players interact with games.

Initially focused on integrating play-to-earn models and digital ownership, web3 

 projects have evolved into vibrant ecosystems powered by blockchain-based assets, such as 

 (NFTs), enabling true ownership and interoperability of in-game items.

With the onset of artificial intelligence (AI), we continue to witness the unlimited potential of technology in the gaming world. AI integration unlocks endless possibilities for the niche by bringing intelligence and adaptability.

 project that aims to elevate player experience by combining the power of NFTs with AI features to revolutionize how games are developed, played and monetized.

Let's learn more about how Altura is helping fuse the power of blockchain and AI technologies to unlock new possibilities in web3 gaming.

Altura is an all-in-one web3 gaming platform designed to leverage blockchain technology and AI to provide developers with everything they need to seamlessly create an interactive and engaging gameplay experience for their players.

Altura's robust SDK and API simplify the addition of web3 functionality to games, enabling seamless interaction with digital assets. Developers can launch custom marketplaces for their games without needing to write a single line of code, reducing complexity and the time required for development.

Among Altura's most outstanding features are its smart NFTs. Unlike traditional NFTs, which are static and non-transferable, smart NFTs are dynamic in-game assets that can evolve to level up with changing gaming conditions.

Furthermore, Altura guard provides developers with a secure and flexible way to authenticate users on their gaming apps while safeguarding their wallet keys. 

In early December 2024, Altura also unveiled an Intelligence feature that empowers developers with AI tools to create high-quality AI-powered games without hassle.

Altura operates across over 17 blockchain networks, including BNB Smart Chain, 

, making it a flexible and inclusive platform. When minting NFTs, you can easily switch between blockchains, using a drop-down menu on the site’s navigation bar. Gas fees for such transactions are paid in the native token of the network being used.

Altura enables developers to quickly build web3 games via its developer-friendly SDKs (software development kits) and APIs (application programming interfaces). 

Built for flexibility, Altura's SDKs cater to various gaming development needs. Its Unity SDK is optimized for the Unity game engine, offering developers read-only access to metadata, items, tokens and more. Meanwhile, the JavaScript SDK is ideal for both front-end and back-end integration, as it supports NFT minting and transfers with minimal coding. Both SDKs save time and resources, encouraging more developers to adopt blockchain technology in their games.

Altura’s developer-friendly APIs are designed to complement the SDK by facilitating secure communication with Altura’s back-end systems. This capability provides endpoints for developers to create, read, update and delete NFTs.

Gamers can mint and import NFTs on the Altura Marketplace, which is separate from the developer website. All the NFTs created on Altura are based on the ERC-1155 multi-token standard, allowing creators to generate dynamic smart NFTs (more on that below).

You can choose to mint NFTs with an initial supply greater than zero and list them for sale, or mint them with zero supply for a low-cost and more flexible experience through a process called lazy minting. When you lazy mint an NFT, it’s created off-chain and only minted when it’s sold, so the buyer bears the gas fees instead of the seller. Additionally, lazy mint functionality allows for whitelisting and tiered buying of NFTs, as well as other features.

Once you’ve minted NFTs, you’ll need to link them to your gaming project through the platform’s developer dashboard.

On its mission to simplify and revolutionize web3 gaming development, Altura offers a host of features to developers, as follows.

Smart NFTs are an innovative feature on Altura that developers can incorporate into their gaming projects. Unlike traditional NFTs, which are static, smart NFTs evolve based on in-game events or external triggers.

This dynamic functionality allows developers to create engaging and personalized gaming experiences. For example, a weapon NFT in a game could upgrade its attributes after achieving milestones, or a character NFT might gain new abilities after completing quests.

Additionally, Altura has introduced a more transparent form of loot boxes, in which players get to own the randomized in-game assets they collect as NFTs. By incorporating such loot boxes, developers can boost player engagement, drive retention and create monetization opportunities, while maintaining transparency through blockchain technology.

Altura Marketplace is a centralized hub where you can buy, sell or trade NFTs. Via the Marketplace, players can purchase their favorite in-game items, while creators have a platform on which to showcase their projects.

The Altura Marketplace is powered by the Seaport contract created by 

, which makes it more secure and gas-efficient than other marketplaces.

Altura also provides developers with a fully customizable white-label marketplace for their projects, complete with a project’s brand design.

Altura Intelligence is an AI asset generation tool that empowers game developers to create high-quality, in-game content and effortlessly deliver dynamic gaming experiences.

The first phase of Altura Intelligence offers a non-player character (NPC) engine, powered by advanced AI models, that facilitates the creation of immersive NPC experiences customized to a developer's game's parameters. In the second phase, Altura Intelligence introduces a custom Unity and Unreal Engine AI model in order for developers to easily create hyperrealistic worlds, and the NPC engine is upgraded to allow in-game NPCs to be tailored according to the players' interactions with the NPCs.

 that can be used seamlessly across Xbox, PlayStation, PC and mobile. AI technology is used to create flexible security, and allows only direct gaming transactions to be made. The fourth and final phase introduces an 

 that can perform a range of tasks, such as buying and selling NFTs, executing buy and sell orders, and even making travel-related reservations, such as flight and hotel bookings.

Altura Guard II is a security feature that introduces the use of social login and wallet connection to facilitate seamless connection across all 

 blockchains for ease of gaming transactions. Its wallet-agnostic approach allows users to transact via any wallet or social login. With Altura Guard II, players can use a simple five-word combination to connect to gaming apps. The feature uses a noncustodial login system that integrates various tech stacks, such as OpenLogin, Web3Auth and OAuth, to authenticate logins using social media accounts.

Altura Guard II is an upgrade from Altura Guard (Legacy), which lets a user enter their wallet address into an application.

Altura’s developer wallet is an essential tool for game creators. It streamlines the process of interacting with Altura’s ecosystem, allowing developers to effortlessly manage gaming assets, including minting and transferring NFTs.

Its intuitive interface eliminates the complexity of blockchain management, enabling developers to focus on creating engaging gaming experiences.

ALU is the native utility token for the Altura ecosystem, with a total/max/circulating supply of 990 million. The token is designed to leverage blockchain technology for seamless transactions between developers and gamers.

As the native token for Altura, ALU is used as the primary currency for transacting with various features on the Altura platform. You can use ALU tokens for in-platform transactions, such as purchasing in-game assets on the Altura Marketplace or unlocking AI features like the Altura Intelligence tools.

You can buy Altura’s ALU token on Bybit’s spot trading platform as the 

 Perpetual contract, with leverage of up to 50x.

As of Jan 28, 2025, ALU is trading at $0.0975, with a market cap of $96.52 million and a 24-hour trading volume of $36.28 million. Its current price is an 79% drop from its all-time high (ATH) of $0.46 on Nov 3, 2021, and a 3,699% increase from its all-time low (ATL) of $0.0025 on Jul 19, 2021.

Price forecasting experts are pretty bullish on ALU’s price. Price prediction experts at CoinCodex believe that ALU 

 a maximum price of $0.123 in 2027, and gradually increase to $0.407 by 2030. Meanwhile, technical experts at DigitalCoinPrice believe that ALU's price 

While these prognostications may seem bullish, they aren't financial advice, and they do not guarantee the future price of ALU. We highly recommend that you 

By seamlessly combining blockchain technology with gaming ecosystems, Altura empowers developers to create dynamic and immersive gaming experiences whereby players truly own their in-game assets.

The Altura platform's focus on smart NFTs that adapt and evolve based on in-game events introduces unprecedented utility and flexibility, setting Altura apart in the competitive landscape of blockchain gaming.

Altura provides a compelling value proposition for gamers: real ownership of digital assets, interoperability across games and the ability to monetize achievements in a decentralized marketplace. Furthermore, Altura empowers developers with tools to simplify NFT integration, enabling the creation of complex, engaging and interconnected game economies without requiring extensive blockchain expertise. Its use of AI technology also allows developers to integrate AI features efficiently into games, thus creating even more dynamic gaming experiences for players.

As the gaming industry continues its transition toward web3, platforms like Altura play a pivotal role in defining the future of interactive entertainment. With its innovative approach and strong vision, Altura has the potential to revolutionize web3 games and NFTs for years to come.

Intermediate

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Altura (ALU): Unlocking NFT Potential in Web3 Games

Network3 uses a decentralized approach to meet the growing computational demands of AI, offering a secure and scalable solution for developers and users.

Data drives the digital age, with AI leading the charge. Generative AI models like GPT-3 have revolutionized industries, but come with steep computational demands and costs. Network3 was created to address these challenges by decentralizing AI’s computational needs.

This article introduces Network3 and its vision of creating an efficient, sustainable and distributed machine-learning ecosystem.

 is a decentralized protocol designed to enable secure, anonymous and reliable data transmission and computation, making it easier to train and run AI models efficiently. It combines advanced AI and 

 to address the growing computational needs of AI and blockchain applications, while also boosting scalability and security in 

Network3 was founded by Rock Zhang, a seasoned entrepreneur and technology visionary with deep expertise in internet and AI infrastructure. Having played key roles in building companies like Boostinsider, iHealth Labs and Qihoo 360, Zhang brings a wealth of experience to this ambitious project. Network3 is designed to be a dedicated 

 for artificial intelligence, empowering developers to train and optimize AI models efficiently on a decentralized network.

The idea for Network3 emerged from the urgent need for scalable and privacy-first AI solutions. Traditional cloud providers often come with limitations, such as high costs and 

, as well as privacy concerns. Network3 tackles these issues head-on by linking devices worldwide into a distributed system. This decentralized approach reduces dependence on centralized cloud platforms, making AI more accessible and resource-efficient.

Distributing AI tasks across multiple devices allows Network3 to lower latency and strengthen user privacy, addressing critical challenges in today’s AI landscape. The project’s bold vision has attracted significant support, with $5.5 million in funding from major investors like Borderless Capital and Bing Ventures.

Decentralized networks face a critical challenge: the lack of reliable and secure data transmission. This limitation affects the performance and trustworthiness of blockchain ecosystems, leading to unreliable transaction exchanges, vulnerabilities in communication and a subpar user experience. As web3 continues to expand, existing 

 (DApps), but they fall short in providing a scalable and secure protocol for data exchange.

Network3 tackles this issue by developing a decentralized data transmission protocol designed to enhance the scalability and security of Layer 1 blockchains. The protocol strengthens the reliability of blockchain ecosystems by creating a framework that ensures efficient and secure data exchange. 

Network3 integrates several advanced features, such as an anonymous certificateless signcryption (CLSC) algorithm, a data correctness verification mechanism and an IP anti-tracking measure. These innovations support smoother transactions, enhance user privacy and improve system scalability, contributing to a more robust web3 experience. Network3’s efforts bridge a critical gap, making decentralized systems more efficient, secure and prepared for the future.

Network3’s decentralized protocol is designed to provide secure, anonymous and reliable data transmission and computation. By leveraging a network of distributed 

, Network3 ensures data privacy and enhances computational efficiency, making it ideal for modern AI and blockchain applications.

At the heart of Network3 lies the CLSC algorithm, which enables both encryption and digital signatures without relying on traditional certificates. This innovative approach ensures secure data sharing while safeguarding user anonymity. Additionally, a specialized smart contract, SCKGC, manages the generation of public parameters and the distribution of partial private keys, creating a secure foundation for communication.

Network3 integrates advanced features to create a scalable, efficient platform that meets the growing needs of AI and blockchain technologies, while prioritizing the following security, privacy and user incentives:

Network3 has achieved remarkable milestones since its inception, solidifying its position in the decentralized computing and AI landscape:

Looking ahead, Network3 aims to achieve several objectives in the near future:

N3 is the native token of Network3. It powers the ecosystem by enabling seamless transactions and incentivizing active participation, and is used for paying transaction fees, rewarding node operators for their contributions and unlocking premium services within the network.

The tokenomics of N3 are designed to foster long-term growth and sustainability, with a total supply capped at 1 billion tokens. Distribution is structured as follows:

Looking to trade Network3 tokens? Bybit now offers the N3/USDT Spot trading pair. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

N3 appears to be a promising investment opportunity, particularly for those interested in the growing intersection of decentralized computing and AI with blockchain technologies. The project has already secured significant funding from prominent investors, demonstrating confidence in its long-term potential. In addition, Network3’s innovative approach to decentralized data transmission and computation, combined with its robust security measures, positions it to address key challenges in the AI and web3 spaces. 

The platform's scalability, along with its incentivized node participation, makes it an attractive proposition for developers and users alike, ensuring the ecosystem's growth and sustainability.

However, as with any emerging project, N3 carries inherent risks, particularly in the 

. While the platform’s tokenomics and strong infrastructure provide a solid foundation, the success of the N3 token is closely tied to the adoption and real-world application of Network3’s technology. Thus, while N3 offers significant upside potential, prospective investors must carefully consider the risks involved.

Network3 is a decentralized platform built to tackle the increasing demands of AI and blockchain technology. By connecting devices worldwide, it offers a more secure, scalable and privacy-focused way to run AI applications. 

With a strong network of nodes and substantial investor backing, Network3 aims to revolutionize the way AI and blockchain work together. The N3 token fuels the ecosystem, rewarding participants and helping to grow the platform. While the project shows promise, it’s important to note the inherent risks of investing in the fast-changing web3 blockchain space.

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Network3 (N3): Fueling AI Innovation With Decentralized Power

Abstract, a consumer-centric blockchain leveraging ZKsync's zero-knowledge stack and Celestia's architecture, has officially launched its mainnet to drive mass adoption. 

Daily Top Performer — AI Rig Complex (ARC)

The S&P 500 declined by 1.46% yesterday due to rising AI competitions concerns from Chinese startup. Gold fell to $2742 as investors favoured fixed income and defensive equities instead of bullion following a recalibration of future returns for the heavyweight US tech output. Coindesk Indices, was down by 1.92%, with Bitcoin and Ether dropping by 0.72% and 2.06%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is ARC, which surged 30.6% following ARC’s recent 

AI Rig Complex (ARC), founded in 2024, is an advanced AI agent framework built with Rust, designed to enhance human-computer interactions by integrating large language models (LLMs) for intuitive, context-aware applications. With its modular and scalable architecture, ARC enables seamless development of next-generation AI workflows, such as retrieval-augmented generation (RAG) and multi-agent systems, while leveraging Rig Framework's high-performance API. Recently, ARC tokens have surged in market performance, and its cutting-edge platform positions it as a leader in AI and web3 innovation.

Abstract, a consumer-centric blockchain leveraging ZKsync's zero-knowledge stack and Celestia's architecture, has officially launched its 

 to drive mass adoption. The platform is designed to eliminate barriers and simplify onboarding for users transitioning to Web3. With The Portal, a "digital theme park of fun," Abstract provides a seamless entry into the Web3 ecosystem, enabling users to access multiple decentralized applications and projects with just their email address. By integrating ZKsync and Celestia, the network enhances security, speeds up transactions, and brings Web2-level ease of use to blockchain technology.

Yesterday, BTC Spot ETFs experienced total outflows of $164.3 million, comprising $108.5 million from GBTC and $55.8 million from non-GBTC funds.

As Abstract doesn’t yet have its own token, users who interact with its 

 may qualify for a potential airdrop if a token is launched. Stay updated on potential airdrops and developments by following their social channels and newsletter.

Abstract Launches Mainnet to Simplify Web3 Adoption with ZKsync and Celestia Integration

Blockchain

On-chain transactions are validated by miners and added to the blockchain. While off-chain transactions boast of cheaper and faster transactions outside of the main chain. Learn more.

. Bitcoin’s soaring popularity can be traced to several factors, including its simplicity and convenience as a reliable payment system. With Bitcoin, you can make fast, easy, secure peer-to-peer payments, and it is decentralized. The decentralized nature of the network allows for greater transparency and increased trust.

Bitcoin uses blockchain as a ledger to record all of the network transactions on-chain. It uses numerous nodes rather than a single centralized server, and each transaction is verified, recorded and distributed across the various nodes. Because there are no regulatory bodies or cumbersome paperwork involved, overhead is reduced, and so is the risk of errors.

The picture is not completely rosy, however. Security comes with trade-offs, in particular, the fees associated with the transaction, as it can mount during periods of network congestion. Processing speed can also grind to an unbearably slow rate during congested periods. Taking certain transactions off the blockchain might just simplify, speed and lower the cost of your Bitcoin transactions.

This begs the question: will off-chain transactions be the ultimate solution? And what are some of the drawbacks? Before we begin, let’s understand how does a distributed ledger work. 

Blockchain’s Distributed Ledger Explained

 that records, shares and synchronizes transactions in a shared electronic database. First described in 1991, blockchain technology was designed to record transactions without the possibility of timestamp tampering. When Bitcoin was launched in 2009, it incorporated blockchain technology.

In a distributed ledger, independent computers called 

 record and track transactions and other data in their respective electronic ledgers, as opposed to a centralized data repository, such as a traditional bank’s ledger. Data is organized in blocks, which are chained together to create a blockchain. In which, allows anyone to view the entire history of the transaction and prove that there’s no double-spending of the coin. The resulting ledger can then be distributed across the various nodes that make up the blockchain network.

Distributed ledgers offer several benefits over conventional databases. First, they eliminate the need for third-party oversight, which is what makes them so appealing for cryptocurrency. For example, a 

 blockchain provides an objective way for the nodes to validate the order of the transactions. Users can save considerable time, effort and 

 by skipping the intermediary and recording their transactions directly to the 

The decentralized nature of distributed ledgers makes them naturally secure. External attackers will find it difficult or even impossible to access them. The data they contain is highly transparent and spread across all nodes, freely available and easy to view. This transparency and accessibility make them popular not only with cryptocurrencies such as Bitcoin but in other industries as well.

Finally, distributed ledgers are tamperproof and immutable as well. No single user can alter the data they contain, which offers an additional layer of security for all users.

Bitcoin on-chain transactions are validated by miners and recorded on the blockchain. Once the transactions are added to the ledger, the blockchain network is updated and distributed.

A transaction must go through several steps before it can get into the blockchain. In order to carry out an on-chain transaction, you must own Bitcoin on the blockchain and it must be locked in an address. A private key is used to send your Bitcoin to a recipient’s address. Any user who carries out an on-chain transaction needs to pay a transaction fee that varies based on the transaction size of the in bytes and the amount of network traffic at the time. Network congestion can delay transaction processing, and a Bitcoin transaction with a higher fee is normally prioritized and confirmed more quickly.

The Bitcoin network is secure and reliable due to its transparency. Since the blockchain is open and the public ledger is readily accessible to all network participants, counterfeit or double-spending attacks are unlikely to happen. Security is ensured through blockchain immutability. Nothing can be changed, including transaction details, timestamps or other data contained in the blocks. Potentially malicious attacks are blocked before they can occur.

The Drawbacks of Bitcoin On-Chain Transactions

On-chain transactions offer many benefits when it comes to security, but there are limitations involving the blockchain’s scalability, speed and cost.

Scalability has been an issue plaguing Bitcoin nearly from its inception. With the ability to process only about seven 

, the Bitcoin system can be cumbersome and pricey. For this reason, many users tend to keep their lower-value transactions off-chain to reduce network congestion.

Network congestion can lead to delays. On-chain transactions can be slow to confirm, and accepting an unconfirmed transaction comes with risks. For example, Bitcoin transactions are confirmed with an average of ten minutes though it could take up to an hour depending on the network’s condition. An off-chain transaction can be recorded immediately, eliminating the risk of reversal.

Finally, fees are a necessary part of doing business both on and off the blockchain. Miners charge fees for confirming transactions. Unfortunately, these fees can rise sharply as network congestion increases, resulting in higher transaction costs. 

State channels allow users to complete Bitcoin transactions directly off the blockchain and minimize the use of on-chain operations. This alternative uses smart contracts, which define the rules under which an off-chain transaction can occur. Each off-chain transaction creates new states and must be signed by the respective parties. The new state invalidates any previous states.

To use a state channel, each party must open a 

 and deposit the appropriate amount of currency. Parties can then begin to make off-chain transactions using the channel, and the smart contract ensures there is no double-spending. The combined transactions will equal the total amount of deposited currency. When the channel is closed, the final tally is added to the blockchain.

Off-chain transactions are any transactions processed outside the blockchain. These second-layer protocols aim to circumvent the on-chain’s flaws by enabling a cheaper and faster transaction.

 to that wallet, which enables fund transfers off-chain. As long as the channel is active, they can then continue to swap currency as much as they want until they’re ready to settle, at which point they can close the channel and record the final tally on-chain. 

Unlike on-chain networks, there are plenty of off-chain protocols. These include the Lightning Network, Liquid Network, and more. Let’s dive into it. 

 built on top of Bitcoin’s blockchain that allows users to engage in limitless transactions instantly and for minimal cost. The Lightning Network also allows for cross-chain atomic swaps, offering even greater convenience and versatility without the need for third-party custodians.

It is a decentralized peer-to-peer network, which means participants can transact by locking up their Bitcoin in a multi-signature address using a funding transaction. Participants can perform infinite transactions repeatedly with the address for off-chain transactions until the balances are finalized on the blockchain. 

 is a sidechain protocol, meaning it relies on the Bitcoin blockchain for the data, but the operations are carried out separately. Like the Lightning Network, it’s built on top of the Bitcoin blockchain and enables users to transact off-chain while still enjoying security and privacy. The Liquid Network is faster than the main blockchain and more affordable, and it’s confidential, which means that it doesn’t reveal the amount of currency involved in a specific transaction. The only downside is that Liquid is not decentralized. In fact, they are governed.

User A sends one bitcoin (BTC) using the peg-in transaction. The Liquid Network then pegged an equivalent of Liquid to Bitcoin (L-BTC) to users on the network as a representation of the real BTC. These L-BTCs are then used within the Liquid Network to perform infinite transactions until the participants finalize the transactions. Once it is done, users can peg out by exchanging L-BTC one-for-one for BTC.

Just like Bitcoin has Lightning Network, the 

 is Ethereum’s off-chain protocol. It operates independently of the main Ethereum chain, but is considered a “child” chain, anchored to the primary blockchain. It allows users to complete token transfers, swaps and other basic transactions off the Ethereum network at a lower cost and faster transaction speed. Plasma chains use 

 and independent block validation mechanisms for security.

 refers to an independent service that stores and secures tokens, typically for institutional investors transacting large cryptocurrency volumes. Online wallets and private keys are also used to store tokens, but these aren’t foolproof. Each user’s keys include complex alphanumeric codes that can be difficult to remember and use, and these codes can be vulnerable to hackers. Online wallets are equally vulnerable to hackers. Custody solutions are an innovation signaling the developing interest of institutional investors in the ecosystem of cryptocurrency.

Are Off-Chain Transactions Better Than On-Chain Transactions?

Both off-chain and on-chain transactions offer specific benefits and drawbacks for cryptocurrency users. Blockchain technology has a scalability issue, which can be managed through off-chain solutions. Whereas on-chain transaction confirmation time can vary widely depending on network congestion, off-chain transactions execute immediately. The cost is also lower for off-chain transactions, which may have no fee at all until the transaction is added to the blockchain. Off-chain transactions can also offer more privacy, with the details of the transactions kept off the main blockchain and not broadcast publicly.

But there are trade-offs to off-chain transactions. For example, Liquid Network sacrifices Bitcoin’s decentralization for peg-in transactions, and Lightning Network requires BTC to be locked up and there’s a limited capacity of each payment channel. Essentially, there’s no permanent solution to on-chain transactions just yet. There are only trade-offs that fulfill the demands based on one’s need. As blockchain and crypto are evolving, there are chances for off-chain to be a permanent solution, but only time will tell.

Many factors can go into deciding whether to complete your transactions on or off the blockchain. Off-chain transactions tend to be best for those looking for fast, inexpensive and private transactions. On-chain transactions can be better for those seeking security, validation and immutability. Understanding the benefits and drawbacks of both on- and off-chain transactions — as well as what you want and need from your payment experience — can help you make the best decision for your needs.

Crypto Off-Chain vs. On-Chain Transactions: What Are They?

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