Off‑chain Computation (e.g. oracles, or off-chain workers)

1 min read

Pronunciation

[off-cheyn kom-pyoo-tey-shun]

Analogy

Like doing complex calculations on your desktop and then posting only the final result on social media.

Definition

of code or data processing outside the —such as price aggregation, heavy computation, or machine learning—in trusted or verifiable environments, with results submitted on‑chain via oracles or protocols.

Key Points Intro

Off‑chain computation scales dApps by offloading work from on‑chain environments.

Key Points

Oracles: Fetch and preprocess external data.

Worker pools: Execute heavy tasks in sidechains or trusted enclaves.

Verifiability: Use SNARKs or remote attestation for trust.

Cost efficiency: Reduces on‑chain gas consumption.

Example

A uses Chainlink OCR to compute a median price off‑chain and it on with a signed aggregate.

Technical Deep Dive

Off‑chain nodes run workers, compute transitions, generate zk‑SNARK proofs, and submit proofs plus new root to validation contract for on‑chain verification.

Security Warning

Trust in off‑chain nodes must be mitigated via threshold signatures or TEEs.

Caveat

Verification overhead may offset savings; choose appropriate proof scheme.

Related Terms

Rollups

Blockchain & Cryptocurrency Glossary

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