An anchor block is a special type of block in a blockchain that serves as a reference point for aligning off-chain data with on-chain transactions. It is particularly useful in systems that combine on-chain and off-chain components.The anchor block typically includes a hash or a specific reference that verifies the integrity and authenticity of off-chain data. By linking this data to the main blockchain, it ensures that actions or states in the off-chain subsystem can be validated against the main chain’s records.This mechanism enhances transparency and trust, as parties can confirm that the off-chain information has not been altered since it was anchored to the blockchain. It can be beneficial for various applications, including supply chain tracking and identity verification, where reliable data handling is crucial.Overall, anchor blocks bridge the gap between different data environments, promoting consistency and security across the entire system.