On-chain vs. Off-chain transactions on Coinbase Prime

An on-chain cryptocurrency transaction is completed by transmitting it over a blockchain to process, validate, memorialize, and store it. Not all of these transactions are directly associated with the sender and/or recipient's wallet addresses. On-chain transactions on Coinbase Prime or Exchange include: 

  • Sending cryptocurrency from a Coinbase Vault wallet. This is a publicly available transaction.

  • Sending cryptocurrency from your Coinbase Prime or Exchange trade balance. These transactions aren't publicly available because they’re bundled and processed together, so they’re not associated with a specific user’s wallet address. 

An off-chain cryptocurrency transaction is completed using a system other than a blockchain. For example:

  • Sending another user your private key to a wallet will transfer custody of the cryptocurrency in the wallet without a blockchain transaction. 

  • Using a third-party guarantor to oversee a transaction and ensure that it’s completed successfully.

Legal Disclaimer

This document is intended for informational purposes only. It doesn't constitute the provision of investment advice. For more information, please consult your Coinbase legal agreement.