Questions have arisen as to whether bitcoin is becoming a multilayer system. Well, the answer is yes. This article aims to outline the different layers on which bitcoin is located. It’s all yours!
Have you heard of those who refer to bitcoin as digital gold? It is clear that cryptocurrency is rapidly gaining popularity and acceptance in the cryptocurrency world. It is estimated that the value of the currency will increase further. However, it is also observed that the currency can gain or lose 50% of its value overnight. This provokes speculation among investors, but the currency is nevertheless a ” digital gold ”. And when faced with the question of whether bitcoin is a multilayer system, it is important to know that bitcoin exists in two main layers. These are the mining and semantic layers.
The mining layer
This is the layer where the coin is created. In addition to bitcoins, ether is also created in this layer. After the coins are created, the valid bitcoin blocks are transferred to the ledger. This is where currency generation takes place. It should be noted that currency is generated from transactions contained in bitcoin blocks. Blogs are known as transaction fees. The currency can also be generated from the network itself, or it can be said “from the core”. The main advantage of generating money from the net is that it offers incentives to miners.
The semantic layer
This provides a very important platform. The semantic layer is the layer in which bitcoins are used as a means of payment. It also provides a platform for bitcoins to be used as a store of value. The layer looks very important, right? Holders of the bitcoin currency sign valid transactions indicating the start of the transfer of bitcoins between the nodes of the semantic layer. Transfer can also be made possible by creating smart contracts. Smart contracts transfer currencies between different accounts.
The lightning network
You’ve probably not heard of the lightning network. This is the latest invention that the bitcoin community is developing. This layer will have the ability to work on bitcoin. With this invention, there will be an application layer that is at the top of bitcoin. It will be so exciting. The most interesting aspect is that its value can also be used to make payments. This will be possible by transporting its value between people. With the invention of the lightning network, bitcoin will become a transport layer and also an application layer.
As of today, the value of bitcoin is estimated at about US $ 9 billion. It is also known that bitcoin is a decentralized cryptocurrency. This means that it works without the control of a bank or an administrator. Bitcoin is surely taking over the crypto world.
It is also important that the technology used during bitcoin mining is called blockchain technology. It works by allowing the distribution of digital information, not copying. Cryptography is really an exciting topic and in the near future bitcoins could outperform our major currencies.