# v. On-Chain vs Off-Chain Data

On-chain and off-chain data describe where information is stored and processed in relation to blockchain systems. This distinction affects scalability, cost, privacy, and how real-world information is referenced, verified, and enforced within tokenized structures.

#### **Data Availability**

The extent to which data can be accessed and retrieved when needed.

#### **Data Reference**

A pointer or identifier stored on-chain that links to off-chain information.

#### **Hybrid Architecture**

A system design that combines on-chain records with off-chain data storage.

#### **Off-Chain Data**

Information stored outside the blockchain, such as documents, models, or databases.

#### **On-Chain Data**

Information stored directly on the blockchain ledger.

#### **Oracle**

A mechanism that delivers external data to a blockchain for use in smart contracts.

#### **Privacy Constraint**

Limitations on what data can be stored or exposed due to confidentiality or regulation.

#### **Scalability Constraint**

Technical limits affecting how much data can be stored or processed on-chain.

#### **Storage Cost**

The economic cost associated with persisting data on a blockchain network.

#### **Verification Anchor**

An on-chain record used to verify the integrity or existence of off-chain data.


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