State Channels
State Channels are a technology used in blockchain networks to enable faster and cheaper transactions. They allow two parties to conduct multiple transactions off the main blockchain, only settling the final result on-chain. This reduces congestion and fees, making it more efficient for frequent interactions.
In a State Channel, participants create a private channel where they can exchange information and value without needing to record every single transaction on the blockchain. Once they finish their interactions, they submit the final state to the main blockchain, ensuring that the results are secure and verifiable.