So this is basically how i visualize the entire BTC Network or eco-system scaling in layers to the world. Layer1 of course is the base money and the absolute final settlement layer, maximizes in decentralization and security. Each layer you climb up from the base, you are sacrificing some of that security in order to increase TVL or maybe add smart contracts functionality. THE layer 2 king is the lightning network, which functions as the inter-operable glue holding all of the other layer 2’s together. The ⚡️network allows for users to instantly swap their BTC between Spark to liquid to a cashu mint or fedimint or to an Ark server. It’s also relied on to send BTC from one specific Cashu mint to another or to hop between 2 seperate Ark servers. So yea the rest of the layer 2’s I out right above the⚡️network as like a layer 2.5 . These are your protocols like Spark and Ark which act as like an extension of the LN filling in some of the UX holes that it has allowing it to scale better to the world. There’s also the federated side chain networks like Liquid, Rootstock and Stacks which can be used for specific use cases like extra privacy or DEFI. The final layer at the top is just what I call application-level protocols. These are just protocols that are simply built on top of the layer 2’s to increase functionality and flexibility even more. So yea this just how I see it…what do yall think? Feel free to share any feedback or opinions, thanks!
