On-chain: data or logic stored and executed directly on the blockchain, providing maximum transparency and immutability but at higher cost. Off-chain: data stored externally (IPFS, Arweave, databases) with only a reference (hash or URI) stored on-chain. The choice depends on cost, size, and trust requirements. NFT images are off-chain; token balances are on-chain.
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On-chain: data or logic stored and executed directly on the blockchain, providing maximum transparency and immutability but at higher cost. Off-chain: data stored externally (IPFS, Arweave, databases) with only a reference (hash or URI) stored on-chain. The choice depends on cost, size, and trust requirements. NFT images are off-chain; token balances are on-chain.
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Wallets, signing flows, dApps, and key management concepts.
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On-Chain vs Off-Chain (on-chain-off-chain) Category: Web3 Definition: On-chain: data or logic stored and executed directly on the blockchain, providing maximum transparency and immutability but at higher cost. Off-chain: data stored externally (IPFS, Arweave, databases) with only a reference (hash or URI) stored on-chain. The choice depends on cost, size, and trust requirements. NFT images are off-chain; token balances are on-chain. Related: Off-Chain Metadata (JSON), Account Data
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The JSON file referenced by an NFT's metadata URI that contains the full description, image URL, attributes, and properties. Typically stored on Arweave (permanent, ~$0.01), IPFS/Filecoin, or Shadow Drive. The JSON schema follows the Metaplex standard: name, description, image, animation_url, attributes[], properties{files[], category}.
The byte array stored in an account that holds program-specific state. Data is typically serialized using Borsh and must be explicitly allocated at account creation. The maximum data size is 10MB. Programs are responsible for defining and managing their own data layout, including discriminators for type identification.
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Services that allow users to convert between traditional fiat currency (USD, EUR, etc.) and cryptocurrency, and vice versa. On-ramps let you buy crypto with a bank transfer, credit card, or other fiat payment method. Off-ramps let you sell crypto back to fiat and withdraw to a bank account. Centralized exchanges, payment processors like MoonPay and Transak, and some wallets provide on-ramp and off-ramp services, often requiring KYC verification.
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The JSON file referenced by an NFT's metadata URI that contains the full description, image URL, attributes, and properties. Typically stored on Arweave (permanent, ~$0.01), IPFS/Filecoin, or Shadow Drive. The JSON schema follows the Metaplex standard: name, description, image, animation_url, attributes[], properties{files[], category}.
The byte array stored in an account that holds program-specific state. Data is typically serialized using Borsh and must be explicitly allocated at account creation. The maximum data size is 10MB. Programs are responsible for defining and managing their own data layout, including discriminators for type identification.
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The vision of a decentralized internet built on blockchain technology, where users own their data, identity, and digital assets. Web1 was read-only (static pages), Web2 is read-write (platforms like social media), Web3 is read-write-own (permissionless, user-sovereign). Web3 applications use wallets instead of logins and smart contracts instead of centralized servers.
An application with its backend logic running on a blockchain as smart contracts rather than centralized servers. dApps typically have a traditional web frontend that interacts with on-chain programs via RPC. Users authenticate with wallets instead of username/password. Examples: Uniswap (Ethereum DEX), Jupiter (Solana DEX), Magic Eden (NFT marketplace).
Software or hardware that manages cryptographic keys and enables users to sign transactions, view balances, and interact with dApps. Hot wallets (Phantom, Solflare, Backpack) are internet-connected for convenience. Cold wallets (Ledger, Trezor) store keys offline for security. Wallets don't actually 'hold' tokens—they hold the private keys that control on-chain accounts.
A 12 or 24-word human-readable backup of a wallet's master private key, generated using BIP-39 standard. The seed phrase can deterministically regenerate all derived keypairs (BIP-44 derivation paths). Losing the seed phrase means permanently losing access to all associated accounts. Never share, photograph, or store seed phrases digitally in plain text.