The Multilayered Cryptocurrency

Questions have arisen as to whether bitcoin is becoming a multi-layered system. Well, the answer is yes. This article tries to outline the different layers on which bitcoin lies. Everything is yours!

Have you heard of those who call bitcoin digital gold? It is clear that cryptocurrency is rapidly gaining popularity and acceptance in the crypto world. The value of the coin is expected to increase. However, it is also noted that the coin can win or lose 50% of its value overnight. This has sparked speculation among investors, but the coin is still “digital gold”. And when asked whether bitcoin is a multi-layered system, it should be known that bitcoin exists in two main layers. These are the extractive and semantic layers.

The mining layer

This is the layer in which 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 log. Currency generation is done here. It should be noted that the currency is generated by transactions that are contained in the bitcoin blocks. Blocks are known as transaction fees. The currency can also be generated by the network itself, or you can say “out of nowhere”. The main advantage of generating currency from the network is that it provides 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 stock of value. The layer looks very important, doesn’t it? Bitcoin currency holders sign valid transactions that signal the start of bitcoin transfer between semantic layer nodes. The transfer can also be made possible by creating smart contracts. Smart contracts transfer coins between different accounts.

The lightning network

You probably haven’t heard of the lightning network. This is the latest invention released by the bitcoin community. This layer will have the ability to work on bitcoin. With this invention will come an application layer that is on 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 as well as an application layer.

To date, the value of bitcoins is estimated at about $ 9 billion. Bitcoin is also known to be a decentralized cryptocurrency. This means that it works without the control of a bank or administrator. Bitcoin certainly takes over the crypto world.

It is also important that the technology used during the extraction of bitcoin is called blockchain technology. It works by allowing digital information to be disseminated, not copied. Crypto is a really exciting topic and in the near future bitcoins may overtake our main currencies.