Problem Statement & Motivation

2.1 Bitcoin’s Transaction Limitations

Bitcoin’s design prioritizes security and decentralization through its proof-of-work consensus mechanism and global network of validators. While these design choices establish Bitcoin’s fundamental value proposition, they introduce inherent limitations for everyday transaction use cases. The network’s 10-minute average block time results in confirmation latencies typically ranging from 10 minutes to over an hour for adequate security assurance. Transaction fees fluctuate based on network demand, occasionally reaching prohibitive levels during periods of congestion. The network’s throughput remains constrained at approximately 7 transactions per second, significantly below the capacity required for global payment infrastructure. These characteristics render base-layer Bitcoin transactions unsuitable for real-time payment scenarios such as point-of-sale commerce or time-sensitive financial operations.

Mempool congestion during peak usage periods further compounds these issues, creating unpredictable transaction confirmation times and fee estimation challenges. It is crucial to recognize that these limitations are not design flaws, but rather natural consequences of Bitcoin’s robust security model and commitment to decentralization. They represent necessary trade-offs in Bitcoin’s fundamental architecture that optimize for censorship resistance and settlement assurance over transaction speed and cost efficiency.

2.2 Complexity of Existing Scaling Approaches

The Lightning Network represents the most established scaling solution for Bitcoin, offering significant improvements in transaction speed and cost. However, Lightning’s implementation introduces considerable complexity that limits its mainstream accessibility. The requirement to create and fund payment channels presents both a technical and capital barrier to entry. Users must lock Bitcoin in channels, fragmenting liquidity across the network and creating capital inefficiencies for individuals and businesses.

Routing failures occur when viable payment paths cannot be established between parties, particularly for larger payment amounts or when recipient nodes have insufficient inbound liquidity. Lightning nodes require consistent uptime and active management to maintain channel health and respond to routing requests, creating operational overhead that exceeds the technical capabilities of average users. The complex nature of channel management, watchtowers, and backup procedures creates a steep learning curve that proves challenging for non-technical users to navigate.

While Lightning demonstrates remarkable technical capabilities for specific use cases, its operational complexity presents a significant obstacle to mainstream adoption, particularly in contexts where technical resources are limited or user experience expectations are high.

2.3 Barriers to Mainstream Bitcoin Adoption

The current Bitcoin payment experience contains several friction points that impede widespread adoption beyond store-of-value use cases. The user experience challenges begin with wallet setup and extend through the transaction process, where confirmations times, fee estimations, and technical terminology create cognitive overhead for new users. Merchants face particular difficulties implementing Bitcoin payment solutions due to inconsistent fee expectations that complicate accounting and price setting. The variability in confirmation times also complicates inventory management and fulfillment processes for time-sensitive transactions.

The high technical barrier for properly securing, managing, and transacting Bitcoin remains a significant obstacle. While experienced users navigate these complexities effectively, the lack of plug-and-play simplicity prevents Bitcoin from achieving the frictionless payment experience necessary for global adoption. These barriers disproportionately affect users in regions that would benefit most from Bitcoin’s borderless properties, including emerging markets with limited banking infrastructure or regions with currency instability. Until these friction points are addressed, Bitcoin’s utility will remain primarily anchored to store-of-value use rather than medium-of-exchange applications.

2.4 The Need for a Lightweight Transaction Layer

These challenges highlight the need for a simple, accessible transaction layer that improves Bitcoin usability without introducing complex mechanics or security compromises. An effective lightweight layer would maintain Bitcoin’s core security guarantees while reducing transactional friction through improved confirmation speed, fee predictability, and simplified user interfaces. Such an approach would enable broader participation in the Bitcoin ecosystem without requiring specialized technical knowledge.

Lightweight transaction layers have particular appeal across several key segments. New users benefit from reduced complexity during their initial Bitcoin experience. Global remittance use cases require the speed and cost efficiency that lightweight layers can provide. Merchants gain the ability to confidently accept Bitcoin payments with predictable settlement times and fee structures. Mobile applications can leverage fast transactions to create responsive user experiences. Low-infrastructure environments with limited connectivity or computing resources can participate in the Bitcoin economy through lightweight clients with minimal requirements.

2.5 Why Bitcoin Everlight is Necessary

Bitcoin Everlight addresses these challenges by providing a frictionless Bitcoin payment experience that eliminates the complexities of existing solutions. By removing channel mechanics, Everlight eliminates the need for users to manage payment corridors or monitor channel states. The absence of liquidity requirements means users need not fragment their capital across multiple channels or manage inbound and outbound capacities. The network’s design enables predictable low fees, allowing users and businesses to accurately forecast transaction costs regardless of base layer congestion.

Fast confirmations make Everlight suitable for point-of-sale and time-sensitive payment scenarios where Bitcoin’s base layer cannot practically serve. The minimal onboarding friction allows new users to begin transacting quickly without navigating complex setup procedures or technical configurations. These features combine to create an accessible entry point to Bitcoin’s utility beyond pure store-of-value functions.

Importantly, Everlight enhances Bitcoin’s usability without modifying the base protocol, preserving Bitcoin’s security model while extending its practical utility. This approach respects Bitcoin’s conservative development philosophy while addressing the practical needs of users seeking a more accessible transaction experience. Bitcoin Everlight thus represents a necessary complement to both the Bitcoin base layer and existing scaling solutions, expanding Bitcoin’s practical utility for everyday transactions.