Lightning Labs unveils LayerTree BTC scaling technology

Lightning Labs, a developer of the Bitcoin Lightning Network, has unveiled LayerTree, a scaling technology that would allow one million users to share a single unspent transaction output, or UTXO. The system manages each user’s asset records off-chain in a tree structure and stores only a root value summarizing the full ledger in the UTXO. Using covenant technology, which applies pre-set conditions to Bitcoin transactions, the system verifies proofs against the recorded root each time the shared UTXO is used and updates the record with a new root value. Users can withdraw assets at any time in a single transaction without operator approval while keeping custody of their funds, and operators cannot take user assets. LayerTree also connects to the Lightning Network, allowing users to receive assets while offline, with no expiration date on holdings.