Multilevel cryptocurrency

The question is whether Bitcoin is becoming a multi-layered system. Well, the answer is yes. This article wants to outline the different layers of Bitcoin. All yours!

Have you heard of those who refer to Bitcoin as digital gold? Clearly, crypto-currencies are rapidly gaining popularity and acceptance in the crypto world. The value of the currency is expected to rise further. However, it is also mentioned that the currency can gain or lose 50% of its value overnight. While this is a source of speculation among investors, the currency is a “digital gold”. And in answer to the question of whether Bitcoin is a multilevel system, it should be noted that Bitcoin exists at two main levels. These are the mining and semantic levels.

Mining level

This is the level at which the coin is made. In addition to bitcoin, ether is also produced at this level. After the coin is created, the legal blocks of bitcoin are transferred to the laser. Here, coins are made. It should be noted that the currency is created from the transactions in the Bitcoin block. Blocks are known as transaction fees. The coin can also be made from the network, or you could say “from thin air”. The main advantage of generating currency from the network is that it provides incentives to miners.

Semantic level

It provides a very important platform. The semantic level is the level at which Bitcoin is used as a means of payment. It also provides a platform for using Bitcoin as a value store. The level seems very important, doesn’t it? Holders of bitcoin currencies sign legitimate transactions that signal the beginning of bitcoin transfers between nodes at the semantic level. Transfers can also be made possible by creating smart contracts. Smart contracts transfer money between different accounts.

Lightning network

You probably haven’t heard of the Buzz Network. This is the latest invention to be rolled out by the Bitcoin community. This layer will have the ability to run on top of Bitcoin. With this innovation comes an application level on top of Bitcoin. It would be so exciting. The most interesting aspect is that its value can also be used to pay. This will be possible by transporting its value among the people. With the invention of Lightning Network, Bitcoin will become an application level as well as a transport level.

As of today, the value of Bitcoin is estimated at about $ 9 billion. It is also known that Bitcoin is a decentralized cryptocurrency. This means it operates without the control of a bank or administrator. Bitcoin is definitely occupying the crypto world.

Also important, the technology used during bitcoin mining is called blockchain technology. It works by allowing the distribution of digital information, not copying. Crypto is a really exciting topic and in the near future Bitcoin may surpass our mainstream currency.