The question is whether Bitcoin is being converted to a multilayered system. Well, the answer is yes. This article tries to outline the different levels depending on Bitcoin. All yours!
Have you heard of those who refer to Bitcoin as digital gold? Clearly, cryptocurrencies are rapidly gaining popularity and acceptance in the crypto world. The value of the currency is expected to rise further. However, it can also be noted that a currency can gain or lose 50% of its value overnight. This creates speculation among investors but the currency is still a “digital gold”. And in the question of whether Bitcoin is a multilayered system, it should be noted that Bitcoin exists on two main levels. These are the mining and semantic layers.
This is the level at which the coin is made. In addition to bitcoins, ether is also created in this layer. After the currency is created, the legal blocks of bitcoins are transferred to the ledger. Here, coin production is done. It should be noted that currency originates from transactions that take place in blocks of bitcoins. Blocks are known as transaction fees. Coins can be made from the network itself, or you can say “from thin air”. The main advantage of producing coins from the network is that it provides incentives to miners
It provides a very important platform. The semantic level is the level at which bitcoins are used as a means of payment. It provides a platform to use Bitcoins as a value. The level seems very important, doesn’t it? Holders of Bitcoin currencies sign legal transactions that initiate the transfer of Bitcoins between semantic level nodes. Transfers were also made possible by creating smart contracts. Smart contracts transfer coins between different accounts.
You probably haven’t heard of the Lightning Network. This is the latest invention of the Bitcoin community. This level will have the ability to run on top of Bitcoin. With this discovery, an application level will come up that will be at the top of Bitcoin. It would be so exciting. The most interesting aspect is that its value can also be used for payment. This will be possible through the transport of its value among humans. With the discovery of the lightning network, Bitcoin will become a transport layer as well as an application layer.
As of today, the value of Bitcoin is estimated at about িয়ন 9 billion. It is also known that Bitcoin is a decentralized cryptocurrency. This means it operates without the control of any bank or administrator. Bitcoin is certainly occupying the crypto world.
More importantly, the technology used during bitcoin mining is called blockchain technology. It works by allowing the distribution of digital information, and without copying. Cryptos is a really exciting topic and in the near future bitcoins may surpass our mainstream currency.