Bitcoin Layer

Definition ∞ A Bitcoin layer denotes a distinct protocol or network built on top of the Bitcoin blockchain to extend its functionality. These layers are designed to address specific limitations of the base Bitcoin protocol, such as transaction speed or programmability. They enable new use cases without altering the foundational Bitcoin ledger.
Context ∞ Discussions about Bitcoin layers are central to understanding scalability solutions and new application development for the Bitcoin network. News often covers advancements or debates surrounding layers like the Lightning Network, which aim to improve transaction throughput and cost-effectiveness. Analyzing these developments is key to grasping Bitcoin’s future utility beyond its store-of-value proposition.