⚡ Bitcoin Layer 2 & Citrea
Scaling Bitcoin for billions of users
The Scaling Challenge
Bitcoin's base layer processes ~7 transactions per second. Visa handles 65,000+. How can Bitcoin serve billions?
The Answer: Layer 2
Build on top of Bitcoin. Keep the security and decentralization of Layer 1 while adding speed and functionality on Layer 2.
⚡ Lightning Network
The first major Layer 2—a network of payment channels enabling instant, near-free Bitcoin transactions.
Instant Payments
Transactions confirm in milliseconds, not 10 minutes.
Tiny Fees
Fractions of a cent per transaction—even for micropayments.
The Chivo wallet uses Lightning to enable everyday Bitcoin payments for 6+ million citizens.
🔶 What is Citrea?
Citrea is a Bitcoin Layer 2 that brings smart contracts to Bitcoin using zero-knowledge rollup technology.
Ethereum-compatible (EVM) smart contracts powered by Bitcoin security
Validity proofs verified on Bitcoin—mathematically impossible to cheat
Built on Bitcoin's security, not a separate chain
Lending, trading, and financial apps with BTC as the native asset
🔄 Lightning vs Citrea
Lightning Network
Best for: Payments
Speed: Instant
Use case: Coffee purchases, tipping, remittances
Citrea
Best for: Smart contracts
Speed: Fast (rollup batches)
Use case: DeFi, NFTs, complex applications
Rollups bundle many transactions together and post a single proof to the main chain. This dramatically increases throughput while inheriting base layer security.
Zero-Knowledge rollups generate mathematical proofs that thousands of transactions were executed correctly. Bitcoin verifies these proofs without processing each transaction individually.
🏛️ Austrian Economics: Permissionless Innovation
"The market is not a place, a thing, or a collective entity. It is a process." — Ludwig von Mises
Layer 2s embody free market principles—entrepreneurs building solutions without asking permission from any central authority. Anyone can create a Layer 2 on Bitcoin.
Unlike traditional finance where innovation requires regulatory approval, Bitcoin Layer 2s can be launched by anyone. The market decides which solutions succeed.
🌍 The Vision: Bitcoin for Everyone
📝 Final Quiz
Complete this final quiz to graduate from the Pre-Course! You need 80% to pass.
Congratulations!
You've completed the Bitcoin Arcade Academy Pre-Course. You now understand the fundamentals of Bitcoin, Austrian economics, and the future of decentralized finance.
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