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Crypto Terms:  Letter S
Jun 19, 2023 |
updated Apr 02, 2024

What is State Channel?

State Channel Meaning:
State Channel - a second-layer scaling solution used to distribute on-chain and off-chain transactions to reduce network load.
1 minute

Let's find out State Channel meaning, definition in crypto, what is State Channel, and all other detailed facts.

A state channel is a second-layer scaling solution for blockchain networks. State channels help reduce the number of on-chain transactions taking place on the chain to lower the network load. Instead, part of the transactions are moved off-chain and can be signed by the participants to record them on-chain after all procedures are executed.

State channels are similar to the notion of payment channels in Bitcoin’s Lightning Network, except, instead of simply facilitating payments, they also permit general state updates.