Off-chain Governance refers to those rules that apply to transactions occurring in a Blockchain or Cryptocurrency network that moves value outside of the blockchain. Off-chain transactions are primarily supported to make transactions faster, cheaper and more private.

They are most suited for noncryptocurrency transactions. For eg: A Digital Identifier can be stored On-chain in Public or Private Blockchain and information supporting it like a Passport, Drivers License and Personally Identifiable Information (PII) contained in these documents can be stored Off-chain.