At Blockstream we work on the future of Bitcoin. We’re dreamers, so we dream about the future. We dream in terms of decades, not the next few months but the next few decades.

Inflation is theft. It’s taking your purchasing power away. But by using fiat money it makes it seem like you’re obeying market forces. They’re paying you to go do something, when in fact, they’re stealing from you and then paying you to do something.

Essentially, all wrapped assets are IOUs. It is not the real asset. It is just the representation of the asset. When we take bitcoin and use whatever bridge you want, they will issue a wrapped version of BTC (e.g. wBTC or renBTC), on the chain you are traveling to and there are some problems with them.

In order to understand a layer of Bitcoin, the first thing you need to understand is what layer one looks like. Let’s talk really fast about how transactions work on layer one of Bitcoin and then we’ll take that understanding and move it into layer two.