Participants update the state channel by exchanging off-chain messages. These messages describe an update to the state deposit, for instance, a payment that changes the balance between two parties in a payment channel, or a player’s next move in a chess state channel. Participants can continue exchanging these off-chain updates without incurring any on-chain fees until they choose to close the channel, at which point the most recent state update is sent to the on-chain multisig as a single transaction, and the state deposit is withdrawn to the parties in accordance with the final state.