Why is scalability so important for blockchain?, by Yellow blockchaintechnology blockchain
A state channel is a mechanism enabling transacting parties to interact off-chain and further record with a blockchain only the final state between them. It's like two traders would make x-number of transactions between each other during a day, and by the evening, would officially post the final net balance between them.
moving transactions off of a chain allows to dramatically reduce the computational load of a Layer 1 network without losing security.: transactions within a state channel are not publicly broadcasted. Only the opening and closing of a state channel goes into a blockchain.once both parties sign a state update, all the transactions between them are deemed to be completed. No miners’ confirmations are required for that.
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