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Quiz Entry - updated: 2026.07.30

The "data management" family contains which four patterns, and what question do they collectively answer?

Encrypting On-Chain Data, Tokenisation, Off-Chain Data Storage, and State Channel — together they answer "what data goes on-chain, in what form, and what stays off?"

Storage on a blockchain is scarce (full replication), public (no privacy by default), and permanent (immutable). The four data-management patterns each take a different cut at living with that:

  • Encrypting on-chain data — keep data on-chain but confidential, by encrypting before writing.
  • Tokenisation — represent a transferable asset as an on-chain token.
  • Off-chain data storage — keep bulky data off-chain, anchor only its hash on-chain for integrity.
  • State channel — keep high-frequency or tiny updates off-chain entirely, settling only the net result on-chain.

Two of them (encrypting, tokenisation) put data on the chain in a safer form; two (off-chain storage, state channel) keep data off the chain while still leaning on it for a guarantee.

From Quiz: IOTHACK / Design Patterns for Blockchain Applications | Updated: Jul 30, 2026