Replying to Avatar dshf

This list might not be complete but let me try. I hope I do not mess around

L1 - settlement layer, utxo on Bitcoin blockchain

L2 - lightning, liquid, whatever bitcoin that is locked down on L1 and might be redeemed by user. I know there are differences

L3 - ecash which can be minted/ redeemed on some L2 bitcoin

L4 - paper bitcoin, custodial like on exchanges, custodians, ETFs

I do not think this list is complete but I would like to make a point that bitcoin as a form of money may be used in many ways. The way/layer you use depends on availability and purpose. One might have utxos in cold storage as long term deposit, pay for goods/services with lightning, sent ecash to family and friends, buy ETFs for official retirement account, gamble on exchange with options.

Average Li somewhere in south east Asia might be using custodial government approved lightning wallet and still get better that using devalued currency which is nit accepted anywhere outside his country.
Avatar
average_bitcoiner 1y ago

Also, IMHO LN is the only Layer 2 since you can't go unilaterally to chain with any of those other ones.

Reply to this note

Please Login to reply.

Discussion

Avatar
dshf 1y ago

Yes, as if Today it is. If we put criteria like that only LN is L2. I put is the same bucket Liquid as multisig which is also tied to L1 but of course it is not trustless. Maybe it should be separate category.

Avatar
average_bitcoiner 1y ago

Federations definitely have different trust assumptions than LN. I hope we get more Layer 2's. But maybe LN is enough to scale federations and other multi-sig stuff.

Have you seen https://radpool.xyz?

Avatar
dshf 1y ago

Thanx. I’ll take a look at it.