Every second, there are thousands of transactions being executed on the blockchain network. Specific transactions that are available on the distributed public ledger are known as on-chain transactions. Essentially, these on-chain transactions have been executed and added to the blockchain network, leading to an overall update to the network. Before any transaction is added to the network, it must have passed through validation by the participants on the network. These participants are also known as miners. They are in charge of confirming and validating transactions by verifying the specific details of the transaction before adding it to the blockchain. After the confirmation, the details of the transaction become open to the parties on the network. There are different protocols being operated by different networks, depending on the one in use, when the transaction gets confirmed by a large number of participants on the consensus mechanism of the network, it becomes almost irreversible. The only exception that could allow for reversal is if a greater number of the hashing power agrees upon making those changes.
On-chain Transaction Timing.
Generally, under normal circumstances, on-chain transactions should be executed in real-time to promote the security of the network, its transparency, and its dependence. However, the reality is quite different. Due to the nature of on-chain transactions needing a large number of the parties to verify the transaction, it takes a while for the system to garner these authentications. Another factor affecting the timing of these transactions is the time required for the miners to solve complicated math problems for the validation process of new transactions as in those of the Bitcoin Prime trading robot. Occasionally, there are times when the network experiences congestion whereby validation can take longer. In most cases, when this happens, the miners are limited in number, making the time lag more apparent. The result of this is other parties involved in the transaction processes being delayed until the first level is resolved. However, the option of speeding up transactions at a few is also available.
The use of On-chain transactions will mostly be seen in the early stages of a blockchain when the volume of transactions on the network is still relatively low. At this point, On-chain transactions would be able to offer instant settlements. Currently, advancements are underway in the cryptocurrency world for new protocols targeted at providing instant settlement options.
Public Ledger system of On-chain transactions.
Security and transparency are ensured in on-chain transactions due to the addition of a timestamp to each transaction. Also, the transactions are copied throughout the network, making a breach nearly impossible. Another advantage of On-Chan transactions is that they cannot be changed after they have been executed. The point further boosts the security on the platform, also preventing any form of hack in which previous transaction details can be edited. Besides their immutability, the transactions here are also open to all the participants on the network to view, making it as transparent as possible and preventing attacks on the system.
Even though there are extensive advantages to the distributed nature of a blockchain network, recording of the details in on-chain transactions and broadcasting of the data may also expose a vulnerability to the parties involved. In the case of an attack, those details could be used to track participant identities on the network. This makes the public ledger system appear as a form of threat to the anonymity attribute of the blockchain and by extension, the security of the involved parties.
On-chain transactions seem like the perfect solution for some of the problems currently combating the world of cryptocurrency, especially the problem of transaction speed. However, evidence has shown that there are complexities to its complete integration in new and existing cryptocurrencies.
