Define ‘On-Chain’ versus ‘Off-Chain’ Execution.
'On-chain' execution refers to a transaction or computation that is processed, verified, and recorded directly on the blockchain ledger by the network's consensus mechanism. 'Off-chain' execution refers to processes that occur outside the main blockchain, such as a price feed from an Oracle or computation in a layer-2 scaling solution.
Smart contracts are typically executed on-chain for finality, but often rely on off-chain data.