State Channel

A method used to perform multiple blockchain transactions without committing the whole transaction to the blockchain.

State Channel is a method that is used in cryptocurrency to perform multiple blockchain transactions without committing all of the transactions to the blockchain. Every transaction develops a new state established on the former state, and is signed by each party. The former state subsequently becomes invalid by each new state because only the highest state is acknowledged by the smart contracts as a valid state.

State Channels ensure that the privacy of users is protected. During transactions, only the participants of the channel are aware of those transactions.