# State Channel 1. State channels are interactions which get conducted off the blockchain without significantly increasing the risk of any participant. Moving these interactions off of the chain without requiring any additional trust can lead to significant improvements in cost and speed. State channels work by locking part of the blockchain state so that a specific set of participants must completely agree with each other to update it. 3. A system that moves transaction interactions off the blockchain to reduce cost and increase speed. Transactions are locked until all participants agree and verify them.