Lightning Labs proposes Bitcoin scaling solution LayerTree: up to approximately 1 million users share a single UTXO.

BlockBeats news, October 16: Lightning Labs has proposed a Bitcoin scaling solution called LayerTree, designed as a non-custodial architecture that allows up to approximately 1 million users to share a single UTXO and connect with the Lightning Network. Balances are recorded off-chain in a Merkle-sum tree, with the shared output committing to the tree root, enabling users to unilaterally exit in a single transaction. The solution relies on pending Bitcoin consensus layer changes, such as covenant-related opcodes, and cannot currently be deployed directly on the mainnet. The project team describes it as a design and reference implementation, and the opcodes used remain proposals rather than current consensus rules.