On-Chain Computation
On-chain computation refers to the execution of code and processing of data directly on a blockchain network, where all operations are validated and recorded on the distributed ledger. This enables decentralized applications (dApps) to run trustlessly, with results being immutable and transparent to all participants. It contrasts with off-chain computation, which occurs outside the blockchain for efficiency but may sacrifice some decentralization or security guarantees.
Developers should learn on-chain computation when building decentralized applications that require tamper-proof execution, such as smart contracts for DeFi protocols, NFT marketplaces, or DAO governance systems. It is essential for scenarios where trust minimization, auditability, and censorship resistance are critical, as it ensures all logic runs in a verifiable environment without relying on centralized servers.