The Multilayered Cryptocurrency

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Questions arose as to whether bitcoin is becoming a multilayer system. Well, the answer is yes. This article seeks to describe the different layers on which bitcoin rests. It's all yours!

Have you heard of those who refer to bitcoin as being digital gold? Clearly, cryptocurrency is rapidly gaining popularity and acceptance in the world of cryptography. The value of the coin should increase. However, it is also noted that the coin can win or lose 50% of its value overnight. This causes speculation among investors but the coin is nevertheless a "digital gold". And to the question of whether bitcoin is a multilayer system, you should know that bitcoin exists on two main layers. These are the mining and semantic layers.

The mining layer

This is the layer in which the piece is created. In addition to bitcoins, ether is also created in this layer. After creating the parts, valid blocks of bitcoins are transferred to the general ledger. Here, the generation of money is over. It should be noted that the currency is generated from transactions contained in the blocks of bitcoins. Blocks are called transaction fees. The currency can also be generated from the network itself, or you can say "from scratch". The main benefit of creating money from the network is that it offers incentives to minors.

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 valuable store. The layer seems very important, is not it? Bitcoin currency holders sign valid transactions that signal the beginning of bitcoin transfer between the nodes of the semantic layer. The transfer can also be made possible by the creation of smart contracts. Smart contracts transfer coins between different accounts.

The network of lightning

You probably have not heard of the Lightning Network. This is the latest invention being deployed by the bitcoin community. This layer will have the ability to run on bitcoin. With this invention, there will come an application layer that is above Bitcoin. It will be so exciting. The most interesting aspect is that its value can also be used to make payments. This will be made possible by transporting its value between people. With the invention of Lightning Network, Bitcoin will become a transport layer and an application layer.

To date, the value of bitcoin is estimated at about 9 billion US dollars. 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 conquering the world of crypto.

It is also important to note that the technology used in the exploitation of bitcoin is called blockchain technology. It works by allowing the distribution of digital information without copying. Cryptos are really an exciting topic and in the near future, bitcoins could overtake our traditional currencies.


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