State Channels
Plain English
Private channels between users where they can make many transactions off-chain, then settle the final result on-chain. Like running a tab at a bar - you make many purchases but only pay once at the end.
Technical
Layer 2 scaling solution enabling parties to conduct multiple transactions off-chain through cryptographically secured channels, with only opening and closing transactions recorded on-chain. State channels provide instant, low-cost transactions but require participants to remain online and lock collateral. Best suited for frequent interactions between known parties.