0 sats \ 0 replies \ @BITCOIN_CEO 13 Nov 2022 \ parent \ on: "Fragmentation means that crypto cannot fulfil the social role of money." (BIS) bitcoin
Well not really a manifesto, read the last sentence.
Another attempt at achieving scalability are so-called “layer 2” solutions. Blockchains such as
Ethereum, Avalanche, Binance or Solana, are commonly referred to as “layer 1” networks. Any transaction
on a layer 1 blockchain is validated and recorded on the respective public ledger, ie “on-chain”. In contrast,
the bulk of transactions on layer 2 solutions (eg the Bitcoin Lightning Network) happen off-chain, and
transactions are only sporadically reported back to the underlying layer 1 chain in bundles. Layer 2
blockchains thereby allow for higher transaction limits and lower fees, but at the cost of giving up
decentralisation, posing risks similar to those of bridges.