The question was whether Bitcoin would become a multi-tier system. The answer is yes. This article will describe the different levels on which Bitcoin lies. It's all yours!
Have you heard of those who call Bitcoin digital gold? Obviously, the cryptocurrency is rapidly gaining popularity and acceptance in the crypto world. The value of the coin is estimated to rise higher. However, it is also pointed out that the coin can gain or lose 50% of its value overnight. This leads to speculation among investors, but the coin is still a "digital gold". And on the question of whether Bitcoin is a multi-tier system, it should be known that Bitcoin exists on two main tiers. These are the mining and semantic layers.
The mining layer
This is the level at which the coin is created. In addition to bitcoins, ether is also created in this layer. After the coins are created, valid Bitcoin blocks are transferred to the general ledger. The currency generation is carried out here. 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 currency can also be generated from the network itself, or you can say "from the air". The main advantage of network currency generation is that it creates incentives for 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 offers a platform on which bitcoins can be used as a store of value. The layer seems very important, doesn't it? The holders of the Bitcoin currency sign the valid transactions, which signal the start of the transfer of Bitcoins between the nodes at the semantic level. The transfer can also be made possible by creating intelligent contracts. The smart contracts transfer the coins between different accounts.
The lightning network
You have probably never heard of the lightning network. This is the latest invention being launched by the Bitcoin community. This level can be done via Bitcoin. With this invention, an application layer will come that is above Bitcoin. It will be so exciting. The most interesting aspect is that its value can also be used for payments. This is made possible by the transport of value between people. With the invention of the lightning network, Bitcoin becomes both a transport and an application layer.
To date, the value of Bitcoin is estimated at around $ 9 billion. Bitcoin is also known to be a decentralized cryptocurrency. This means that it works without the control of a bank or an administrator. Bitcoin is definitely taking over the crypto world.
It is also important that the technology used to mine Bitcoin is called blockchain technology. It works by allowing the distribution of digital information and not copying it. Cryptos are really an exciting topic and in the near future bitcoins could overtake our major currencies.