Reviewed Aug 2026
DE
BA-11 · LESSON 08

Layer comparison

KEY DEFINITIONS

Terms used in this lesson

Oracle
A system that reports outside information, such as a market price, for use by a protocol.
DLC
Discreet Log Contract: a Bitcoin contract whose settlement can depend on an oracle attestation.
UTXO
Unspent transaction output: one discrete chunk of bitcoin that can be used as a transaction input.

Experts compare custody, unilateral exit, data availability, capital efficiency, privacy, and failure recovery rather than relying on labels.

65 min Difficulty 3/5 Not started

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01

Learn the idea

Layer comparison asks which guarantees remain when coordination fails. Custody asks who can move funds. Unilateral exit asks whether one user can reach Bitcoin without permission. Data availability asks what information must be retained. Capital efficiency, privacy, liveness, fee exposure, and recovery describe other independent trade-offs.

GUIDED EXPLANATION1/5 ideas inspected
1

Identify the locked Bitcoin

Name the exact UTXO or bridge custody and the keys or scripts controlling it.

Inspect each idea before the worked example.
The worked example follows the explanation

Inspect every idea above to open it.

Important distinctionSystems called Layer 2 share one standard security model.

Channels, federations, rollup-like designs, Ark variants, and other systems have different custody, data, exit, and validation assumptions.

02
FINISH LEARNING FIRST

The questions unlock after every required learning activity

Inspect every guided idea, open the worked example, rebuild its mechanism, and complete the deterministic lesson tool. Your progress is saved automatically.