The Multilayered Cryptocurrency
Questions have arisen unto whether bitcoin is turning into a multilayered system. Well, the answer is
yes. This article seeks to outline the various layers onto which bitcoin lies on. It's all yours!
Have you heard of those who refer to bitcoin as digital gold? Clearly, the crypto-currency is quickly
gaining popularity and acceptance in the crypto world. The value of the coin is estimated to rise higher.
However, it is also noted that the coin can gain or lose 50% of its value overnight. This causes
speculations amongst investors but the coin is nevertheless a ''digital gold''. And to the question of
whether bitcoin is a multilayered system, it should be known that bitcoin exists on two main layers.
These are the mining and the semantic layers.
The mining layer
This is the layer in which the coin is created. Besides bitcoins, ether is also created in this layer. After
creation of the coins, valid blocks of bitcoins are transferred to the ledger. Here, currency generation is
done. It should be noted that the currency is generated from transactions which are contained in the
blocks of bitcoins. The blocks are known as transaction fees. The currency can also be generated from
the network itself, or you can say ''from the thin air''. The main advantage of generating currency from
the network is that is provides incentives to the 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 store of value. The layer
seems very important, isn't it? The holders of bitcoin targetcrypto sign the valid transactions which
signal the start of transferring the bitcoins among the nodes at the semantic layer. The transfer can also
be made possible by the creation of smart contracts. The smart contracts transfer the coins between
The lightning network
You've probably not heard of the lightning network. This is t