The bitcoin layered stack

2024-03-25 14:21:00 +07:00 by Mark Smith

On a recent What Bitcoin Did Podcast, Dhruv Bansal outlined a big picture view of the Bitcoin blockchain, how it is designed to be extended and built upon in layers. Fundamentally it's all about auctions.

Dhruv's main idea:

"Bitcoin is layers of markets. Each layer relies on functionality of the layer below"

The Bitcoin stack

He goes on:

Each layer increases the reach and scope of Bitcoin, and allows it to do more interesting things. We have to create new markets that allow Bitcoin’s reach to grow.

I thought it was a really valuable way of looking at Bitcoin architecture so I've extracted the essence of what he was saying here, so that I have something to link to from other articles I write. Feel free to do the same from your articles.

It's still worth listening to the full episode to get additional context. They talk about layers about 30 mins into the episode.

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