STATE CHANNEL

This is another core feature of NCOG DeFi. If a pair of users want to make transactions to each other, State Channels will open two-way pathways to do so. It is a process where users make transactions directly. That is off-chain or outside of the blockchain. By drastically minimizing the use of 'on-chain' operations, NCOG aims to ensure anonymous, faster, and cheaper transactions. They can close the channels after providing the last updated state of the transaction. The transaction history uploads into the system before the outcome gets finalized.

State Channel is similar to the concept of payment in Bitcoin's Lightning Network. However, NCOG State Channels will also support general 'state updates' in addition to supporting payments. This upgrade throws light on the number of computation developers to move off-chain and enjoy the comparative edge it will give NCOG DeFi. Although it may seem like the transactions within State Channels aren't as secure as on-chain transactions, NCOG achieves the same security level without spending many resources. Each transaction gets signed similarly to an Ethereum transaction. There is always an option to revert to the main chain as an arbitration mechanism in a more rational than incentivized way.