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General TradingS
State Channel
A Layer 2 scaling solution that allows two or more parties to conduct multiple transactions off-chain, only settling the final state on the main blockchain. State channels dramatically reduce transaction fees and increase throughput by minimizing on-chain interactions.
Example
“The two parties opened a state channel on Ethereum to exchange hundreds of micropayments off-chain, then closed the channel to settle the net balance on the mainnet in a single transaction.”