New Tree-Based Bitcoin Scaling Proposal Targets Millions of Users

Bitcoin developer Olaoluwa Osuntokun has unveiled Layertree, a proposal that could squeeze millions of bitcoin owners into a single blockchain output without surrendering control of their money. The catch? Bitcoin’s existing rules don’t yet allow the technology to work. On Oct. 15, 2026, Lightning Labs developer Olaoluwa Osuntokun published a 103-page paper introducing Layertree, an ambitious attempt to make Bitcoin more affordable for large groups of users without handing custody of their funds to someone else. Today, Bitcoin records individual holdings through separate pieces of digital money called unspent transaction outputs (UTXOs). Each takes up space on the blockchain, and moving that money requires paying transaction fees. Layertree flips that arrangement on its head.

First reported by Bitcoin.com News. This page is a short excerpt; the full text is theirs.