Lightning Network co-founder Olaoluwa Osuntokun has just proposed a Bitcoin scaling solution called LayerTree, which would let tens of thousands or even millions of people share a single on-chain UTXO. Everyone’s balances are recorded off-chain in a tree, so the operator can’t secretly change anyone’s balance. If someone wants to withdraw, they can submit proof themselves and reclaim their funds on-chain in a single transaction, without anyone else’s consent. But this is still a long way from being practical: it requires several opcodes that haven’t yet been activated on Bitcoin, and if more than 60,000 people queued up to exit, it would take over ten days to process them all, even with the blockchain congested.

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