The multilayer cryptocurrency

Website design By BotEap.comQuestions have been raised as to whether Bitcoin is becoming a multi-layered system. Well the answer is yes. This article seeks to delineate the various layers that bitcoin sits on. It’s all yours!

Website design By BotEap.comHave you heard of those who refer to bitcoin as digital gold? Clearly, cryptocurrency is rapidly gaining popularity and acceptance in the crypto world. It is estimated that the value of the coin will increase. However, it is also observed that the coin can gain or lose 50% of its value overnight. This causes speculation among investors, but the currency is nevertheless a “digital gold”. And to the question of whether bitcoin is a multilayer system, it should be known that bitcoin exists in two main layers. These are the mining and semantic layers.

Website design By BotEap.comThe mining layer

Website design By BotEap.comThis is the layer in which the coin is created. Besides bitcoins, ether is also created in this layer. After the creation of the coins, the valid blocks of bitcoins are transferred to the ledger. Here, currency generation takes place. It should be noted that the currency is generated from transactions that are contained in the bitcoin blocks. The blocks are known as transaction fees. The coin can also be generated from the network itself, or it can say “from the air”. The main advantage of generating currency from the network is that it provides incentives to miners.

Website design By BotEap.comThe semantic layer

Website design By BotEap.comThis 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 cape seems very important, doesn’t it? The holders of the bitcoin currency sign the valid transactions that signal the start of the transfer of bitcoins between the nodes of the semantic layer. The transfer can also be possible by creating smart contracts. Smart contracts transfer the currencies between different accounts.

Website design By BotEap.comThe lightning network

Website design By BotEap.comYou probably haven’t heard of the Lightning network. This is the latest invention developed by the bitcoin community. This layer will have the ability to run on top of bitcoin. With this invention will come an application layer that will be on top of bitcoin. It will be so exciting. The most interesting thing 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.

Website design By BotEap.comAs of today, the value of bitcoin is estimated to be around $ 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 surely taking over the world of cryptocurrencies.

Website design By BotEap.comIt is also important that the technology used during bitcoin mining is called blockchain technology. It works by allowing the distribution of digital information and not by copying. Cryptocurrencies are truly an exciting topic, and in the near future, bitcoins could outperform our mainstream currencies.