An on-chain protocol refers to a set of rules or mechanisms that operate directly on a blockchain. All transactions and smart contracts associated with the protocol are recorded and validated on the blockchain itself. This ensures that every action taken is transparent, immutable, and secure.Since on-chain protocols rely on the consensus of all participants in the network, they maintain high levels of security. For instance, once a transaction is confirmed, it cannot be altered or deleted. This transparency fosters trust among users, as they can independently verify transaction history.On-chain protocols also facilitate various activities, such as decentralized finance (DeFi), gaming, and non-fungible tokens (NFTs). They allow developers to create applications that utilize the blockchain’s capabilities, offering a wide range of services while ensuring data integrity.However, on-chain processes may face challenges, such as scalability and transaction speed. As the network grows, increased activity can lead to congestion and higher fees. Despite these issues, on-chain protocols continue to play a crucial role in the development of decentralized applications and services.