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In layered systems, there's a hierarchy of layers. Bitcoin is a layer 1 money protocol. Visa is level 8 (not literally), i.e. it is built on top of layers upon
by Geee 4y ago
In layered systems, there's a hierarchy of layers. Bitcoin is a layer 1 money protocol. Visa is level 8 (not literally), i.e. it is built on top of layers upon layers, which are built on top of US dollar and even that might not be the base layer yet. If we were in a gold standard, gold would be the base layer for US dollar, and the systems on top of it.
Layered systems tend to naturally converge into a single base layer, and the higher layers are more sprawling and dynamic.
- arcticbull 4y agoBitcoin is built on top of several other layers too, the community has just arbitrarily called it 'L1', that's not the point. Thanks, though.