Layertree Proposal Aims to Scale Bitcoin for Millions
- Layertree allows millions to share one Bitcoin output without losing control of their funds.
- Individual withdrawals require approximately 1,020 virtual bytes (vB), while group enrollment can cost less than 1 vB per person.
- The system relies on a mathematical record called a Merkle-sum tree to track balances and verify ownership.
- Layertree requires protocol changes in Bitcoin before it can function effectively.
- Simultaneous withdrawals could lead to congestion due to limited transaction space.
Layertree proposes a novel way for large groups to manage Bitcoin holdings by sharing one output while keeping individual control intact. The system uses Merkle-sum trees for balance tracking and requires new Bitcoin capabilities for operation.
While Layertree offers potential savings in transaction fees, it faces challenges like protocol changes and potential congestion from simultaneous withdrawals. (Source)
