For newcomers to the crypto space, it can be challenging to grasp what a project is all about. In the case of #Bitlayer, backed by @BitlayerLabs , it’s worth breaking down some key concepts to appreciate the scale of the project.
In blockchain terms, Layer 2 (L2) refers to a scalability solution that operates on top of the main Bitcoin network (Layer 1).
Here’s what it means for Bitlayer:
• Main Objective: While Bitcoin’s main network is highly secure and decentralized, it has limits in speed and transaction costs. Bitlayer’s Layer 2 processes transactions off-chain, allowing for faster, cheaper operations without compromising decentralization.
• Bitcoin-Level Security: Built on the BitVM paradigm, Bitlayer anchors its security to the Bitcoin network. This ensures that every transaction benefits from Bitcoin’s trusted consensus and immutable ledger.
By understanding these basics, users can make better-informed decisions and take advantage of Binance’s tools while practicing responsible financial management.
