The question has appeared on whether Bitcoin turns into a multilayered system. Well, the answer is yes. This article tries to describe various layers where Bitcoin is located. It’s all yours!
Have you ever heard those who refer to Bitcoin as digital gold? Obviously, Crypto’s currency quickly gained popularity and reception in the world of Crypto. The coin value is estimated to rise higher. However, it is also noted that coins can obtain or lose 50% of their value overnight. This causes speculation between investors but fixed coins ” digital gold ”. And for the question whether Bitcoin is a multilayered system, it must be known that Bitcoin is in two main layers. This is a mining and semantic layer.
This is a layer where coins are made. Besides Bitcoin, ether is also made in this layer. After the creation of coins, a valid Bitcoin block is transferred to the ledger. Here, the creation of the currency is done. It should be noted that the currency is produced from the transaction contained in the Bitcoin block. The block is known as a transaction fee. The currency can also be produced from the network itself, or you can say ” from thin air ”. The main advantage of producing currencies from networks is to provide incentives to miners.
It provides a very important platform. The semantic layer is a layer where Bitcoin is used as a payment tool. It also provides a platform for Bitcoin to be used as a value store. The layer seems very important, right? The Bitcoin currency holder signed a valid transaction which signaled the beginning of transferring Bitcoin among nodes in the semantic layer. Transfers can also be made possible by the creation of smart contracts. Smart contracts transfer coins between various accounts.
You may have never heard of lightning networks. This is the latest discovery launched by the Bitcoin community. This layer will have the ability to run on Bitcoin. With this invention, there will be a layer of application above Bitcoin. It will be very exciting. The most interesting aspect is that the value can also be used to make payments. This will be possible by transporting its value among people. With the discovery of lightning networks, Bitcoin will be the transport layer and also the application layer.
To this day, the Bitcoin value is estimated at around $ 9 billion. It is also known that Bitcoin is a decentralized cryptocurrency. This means that it works without bank control or administrator. Bitcoin must take over the world of Crypto.