Bitfinex spotlights LayerTree Bitcoin scaling research

October 17, 2026

Bitfinex highlighted LayerTree, an open research proposal that lets many users share a single Bitcoin output, with individual balances tracked off-chain in a tree and each user able to exit independently in one transaction. The exchange noted it has supported Lightning since the beginning and credited the team behind the research.

LayerTree (designed by Lightning Labs) maintains balances in a Merkle-sum tree committed to by one shared output, aiming to cut group costs while preserving independent withdrawals.
Bitfinex shared the research without announcing any integration or product plans.

Sources

One Bitcoin output, shared by many users. Each can exit independently in a single transaction. LayerTree explores a new approach to scaling Bitcoin. We've supported Lightning since the beginning. Credit to the team for the open research. https://t.co/nFiesC5McUx.com ↗

Bitfinex

Bitfinex is the world's leading digital asset trading platform.

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Bitfinex spotlights LayerTree Bitcoin scaling research — Outposts