Off-chain processing involves executing certain transactions or computations outside the main blockchain network. This approach alleviates the burden on the blockchain, leading to faster transaction times and lower fees. Techniques such as payment channels, sidechains, and state channels enable users to conduct multiple transactions off-chain, with only the final state recorded on-chain. This method not only enhances scalability but also preserves the security and decentralization benefits of blockchain technology. The paper “On or Off the Blockchain? Insights on Off-Chaining Computation and Data” discusses various off-chaining patterns and their implementation, highlighting how moving computation and data off-chain can improve performance without compromising the inherent benefits of blockchain systems. In addition, another paper discusses how off-chain processing can contribute to sustainability by allowing certain activities to occur outside the main blockchain, thereby reducing energy demands and increasing efficiency.
https://link.springer.com/article/10.1007/s10796-024-10514-w