The emerging Bitcoin layers introduce a variety of functionalities.

Niti998

- Programmability of smart contracts: Directly implement complex financial and contract transactions on the Bitcoin network.
- Increased throughput speed: Significant reduction in transaction processing time, with speeds of certain layers reaching under 30 seconds.
- Trust-minimized BTC movement to L2: Facilitate secure and efficient movement of BTC across layers, providing a solution to the centralization issues of federated approaches.
- Cost reduction: Lower transaction costs, making Bitcoin trading more accessible to a wider user base.
- Asset issuance and Rollup: Provide new avenues for creating and trading bundled assets to improve efficiency.
- Interoperability and privacy measures: Enhance the network's ability to interact with other blockchain systems while protecting user privacy.
- Virtual machine (VM) and specific functionalities: Support various applications, including gaming, finance, media, and decentralized science (DeSci).

These layers are strategically built on top of Bitcoin's L1, utilizing L1 as a foundational platform, similar to "cold storage" for BTC assets. This layered structure not only allows seamless asset movement across different layers but also unleashes the idle capital of $850 billion worth of Bitcoin. Therefore, applications utilizing these layers benefit from Bitcoin's renowned security and stability.

Ritu13

There are quite a variety of functions as well.