Multi-layered cryptocurrency

Questions have arisen as to whether bitcoin is becoming a multi-layered system. Well, the answer is yes. This article seeks to outline the different layers on which bitcoin rests. 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. But 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 if bitcoin is a multi-layered system, it should be noted that bitcoin exists in two main layers. These are extraction and semantic layers.

The mining layer

This is the layer in which the coin is created. In addition to bitcoins, ether is created in this layer. After the coins are created, the valid bitcoin blocks are transferred to the book. Here the currency generation is completed. It should be noted that the currency is generated by transactions contained in the bitcoin blocks. Blocks are known as transaction fees. 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 for 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 value storage. The layer looks very important, doesn’t it? Bitcoin currency holders sign valid transactions that signal the start of bitcoin transfers between nodes in the semantic layer. Transfer can also be made possible by creating smart contracts. Smart contracts transfer coins between different accounts.

The lightning net

You probably haven’t heard of the lightning network. This is the latest invention introduced by the bitcoin community. This layer will be able to work on bitcoin. With this invention, there will be 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 transferring its value between people. With the invention of the lightning network, bitcoin will become a transport layer as well as an applied layer.

To date, the value of bitcoin 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 is certainly taking over the crypto world.

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