On-Chain vs Off-Chain
Some things happen on the blockchain. Others happen outside it. Understanding the difference helps you understand what is guaranteed by code versus what relies on OpenHouse.
What Is On-Chain
On-chain means it happens on the blockchain and is recorded permanently. These actions are:
Transparent (anyone can verify)
Immutable (cannot be changed)
Automated (executed by smart contracts)
Trustless (do not require trusting a company)
On-Chain at OpenHouse
Token ownership: The blockchain records who owns which tokens
Purchases and sales: Transactions are executed by smart contracts
Yield claims: The distributor contract handles claims automatically
KYC approval status: The Compliance Registry tracks verified wallets
Fee collection: Platform fees are collected on-chain
What Is Off-Chain
Off-chain means it happens outside the blockchain. These actions require trusting the parties involved.
Off-Chain at OpenHouse
Property selection: We choose which properties to list
Property management: Physical property operations
Rent collection: Property managers collect rent in the real world
Yield calculation: We calculate how much to distribute based on rental income
KYC verification: Persona verifies your identity before we approve you on-chain
Property valuations: We determine share prices based on property values
Why This Matters
What You Can Verify
On-chain activity is public. You can check:
Your token balance on Basescan
Total token supply
Transaction history
Contract code and parameters
If the blockchain says you own 500 tokens, you own 500 tokens. No one can dispute it.
What You Trust OpenHouse For
Off-chain activities require trust. You trust that:
We select quality properties
Property managers operate honestly
Rental income is calculated correctly
Yield distributions reflect actual income
We aim to be transparent about both, but only on-chain actions are cryptographically guaranteed.
The Hybrid Model
OpenHouse bridges real-world property with blockchain technology. This means some things must happen off-chain (you cannot collect rent on a blockchain) while others benefit from on-chain guarantees (ownership records, automated distributions).
This hybrid approach gives you:
Blockchain security for ownership and transactions
Real-world property exposure with actual rental income
Liquidity through on-chain trading
Transparency where the technology allows it
Future Developments
Over time, more processes may move on-chain as technology evolves. For example:
Automated property valuations using oracles
On-chain governance for property decisions
More transparent expense reporting
The goal is to maximise transparency and minimise required trust while working within real-world constraints.
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