Definition ∞ A Bitcoin utility layer refers to supplementary protocols and technologies constructed atop the Bitcoin blockchain to extend its capabilities beyond basic value transfers. These layers facilitate more sophisticated operations such as smart contracts, decentralized applications, and improved transaction privacy or speed. Their purpose is to leverage Bitcoin’s security while addressing its inherent limitations in programmability and transaction throughput.
Context ∞ The current discussion frequently focuses on the Lightning Network for faster payments and the emergence of Ordinals and BRC-20 tokens for new asset classes on Bitcoin. A critical debate considers whether these additions compromise Bitcoin’s core principles of simplicity and security. Future developments will likely include continued innovation in scaling solutions and further expansion of application possibilities without altering the base layer.
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