<p>Businesses that provide accounts can transfer notional amounts of money between two of their customers, debiting one customers account and crediting a second customer's account. They can do this without using the Bitcoin network. Without using the Internet (so offline in that sense). All they are doing is changing some numbers in their own computer, separate from everyone else.</p>
<p>An off-chain transaction is one that is not recorded in the Blockchain. For example, a Bitcoin transaction in the Lightning Network is not recorded in the blockchain so is off-chain but it is online not offline - because it involves data communication between multiple parties across the Internet.</p>
<div class="s-table-container">
<table class="s-table">
<thead>
<tr>
<th></th>
<th>on-chain</th>
<th>off-chain</th>
</tr>
</thead>
<tbody>
<tr>
<td>online</td>
<td>bitcoin</td>
<td>lightning</td>
</tr>
<tr>
<td>offline</td>
<td>not possible</td>
<td>exchange customer-customer</td>
</tr>
</tbody>
</table>
</div>
<p><sub>The intersection of two of many ways of categorising transactions denominated in Bitcoin.</sub></p>

CC BY-SA 4.0
2023-12-06T11:27:48.567Z
So technically yes,exchanges uses offline transactions.Am i right?
juhasa
CC BY-SA 4.0
2023-12-06T11:43:43.950Z
Exchanges also use online transactions. For withdrawals and for payments by customers to non-customers.
RedGrittyBrick
CC BY-SA 4.0
2023-12-06T13:24:51.307Z
I guess that offline transactions doesn't require blockchain confirmations,right?
juhasa
CC BY-SA 4.0
2023-12-06T15:06:50.733Z
@juhasa: Imagine that you and your friend Alice both have an account with some bank. You ask the bank to wire $10 to Alice. They just update your account balance to deduct $10, and increase Alice’s account balance by $10. Since they are only updating their own accounting, they can do that at their own leisure. It’s the same with an exchange. If however you want to wire money to Bob that has an account with a different bank, they’d actually need to wire money from bank to bank. In the Bitcoin context that would need a transaction going "on-chain".
Murch
CC BY-SA 4.0
2023-12-06T10:29:28.070Z
2023-12-06T10:41:36.803Z
2023-12-06T10:41:36.803Z
RedGrittyBrick
<p>Do cryptocurrency exchanges use offline transactions?And if yes when they use it?Also is offline transactions somehow related to off chain transaction?</p>

<exchanges><offline><offline-transactions><off-chain>
Offline transaction on exchanges
juhasa
# Offline transaction on exchanges

(Asked by: username_0 on 2023-12-06)

Do cryptocurrency exchanges use offline transactions?And if yes when they use it?Also is offline transactions somehow related to off chain transaction?

**Tags:** exchanges, offline, offline-transactions, off-chain


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## 1 answers

### Answer by username_1 on 2023-12-06. Score: 1 | Accepted answer

Businesses that provide accounts can transfer notional amounts of money between two of their customers, debiting one customers account and crediting a second customer's account. They can do this without using the Bitcoin network. Without using the Internet (so offline in that sense). All they are doing is changing some numbers in their own computer, separate from everyone else.

An off-chain transaction is one that is not recorded in the Blockchain. For example, a Bitcoin transaction in the Lightning Network is not recorded in the blockchain so is off-chain but it is online not offline - because it involves data communication between multiple parties across the Internet.

|  | on-chain | off-chain |
| --- | --- | --- |
| online | bitcoin | lightning |
| offline | not possible | exchange customer-customer |

The intersection of two of many ways of categorising transactions denominated in Bitcoin.

> **Comments:**
> **username_0**: So technically yes,exchanges uses offline transactions.Am i right?  
> **username_1**: Exchanges also use online transactions. For withdrawals and for payments by customers to non-customers.  
> **username_0**: I guess that offline transactions doesn't require blockchain confirmations,right?  
> **username_2**: @username_0: Imagine that you and your friend Alice both have an account with some bank. You ask the bank to wire $10 to Alice. They just update your account balance to deduct $10, and increase Alice’s account balance by $10. Since they are only updating their own accounting, they can do that at their own leisure. It’s the same with an exchange. If however you want to wire money to Bob that has an account with a different bank, they’d actually need to wire money from bank to bank. In the Bitcoin context that would need a transaction going "on-chain".  

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