Bitcoin & Layer 2s Guides

Bitcoin halving occurs approximately every 4 years, cutting the mining reward in half. This reduces new Bitcoin supply, historically leading to price increases. The next halving will reduce rewards from 3.125 to 1.5625 BTC per block.

The Lightning Network is a Layer 2 solution built on Bitcoin that enables instant, low-cost transactions. It works by creating payment channels between users, allowing thousands of transactions per second without congesting the main blockchain.

Bitcoin mining uses specialized computers (ASICs) to solve complex mathematical puzzles. Miners who solve these puzzles first get to add new blocks to the blockchain and receive Bitcoin rewards. This process secures the network and validates transactions.

Layer 2 solutions are protocols built on top of Bitcoin to improve scalability and functionality. Examples include Lightning Network for payments, Stacks for smart contracts, and RGB for tokenization, all while inheriting Bitcoin's security.