Questions have arisen as to whether bitcoin is turning into a multi-layered system. Well, the answer is yes. This article seeks to outline the different layers on which bitcoin lies. It’s all yours!
Have you heard of those who call bitcoin digital gold? It is clear that cryptocurrency is fast becoming more popular and accepted in the crypto world. It is estimated that the value of the coin will grow. However, it is also noted that a coin can gain or lose 50% of its value overnight. This causes speculation among investors, but the coin is still “digital gold”. And when asked if bitcoin is a multi-layered system, you should know that bitcoin exists on two main layers. These are the mining and semantic layers.
This is the layer in which the coin is created. In addition to bitcoin, ether is also created in this layer. After creating the coin, the valid blocks of bitcoin are transferred to the book. This is where currency generation is complete. It should be noted that currency is generated from transactions contained in bitcoin blocks. Blocks are known as transaction fees. Currency can also be generated from the network itself, or you can say “thin air”. The main advantage of generating currency from the grid is that it gives incentives to miners.
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 storehouse of value. The layer seems very important, doesn’t it? Bitcoin currency owners sign valid transactions that signal the start of bitcoin transfers between nodes on the semantic layer. Transfer can also be made possible by creating smart contracts. Smart contracts transfer coins between different accounts.
You probably haven’t heard of the lightning net. This is the latest invention introduced by the bitcoin community. This layer will have the ability to run over bitcoin. With this invention, there will be an application layer that is on top of bitcoin. It will be so exciting. The most interesting aspect is that its value can also be used for payment. This will be made possible by the transfer of 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 bitcoin is estimated at about $ 9 billion. It is also known that bitcoin is a decentralized cryptocurrency. This means that it works without the control of the bank or the 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 distributed, not copied. Crypto is a really exciting topic and bitcoins could overtake our mainstream currencies in the near future.