[Lightning Labs Releases Non-Custodial Bitcoin Scaling Solution LayerTree] Gold Finance reports that on October 16, according to Lightning Labs’ official X account, it has launched LayerTree, a non-custodial scaling solution based on Bitcoin. The solution uses covenant restrictions to allow multiple users to share a single UTXO, with member shares recorded off-chain in a Merkle sum tree, and only the tree root submitted on-chain.
The official documentation states that any user can exit at any time with a single transaction, without requiring pre-signed transactions, time locks, or expiration dates, and without needing to be online to receive funds. According to the website, a single exit in a tree with 65,536 slots is approximately 1,020 vB—about nine times the size of a standard transfer—compared to approximately 2,511 vB for Ark-style solutions; the per-user cost for batch deposits with around a thousand members is less than 1 vB.
The official website also states that this solution relies on unactivated Bitcoin consensus layer changes and cannot currently run on Bitcoin.
Lightning Labs Launches Non-Custodial Bitcoin Scaling Solution LayerTree
JinseShare
Summary
On October 16, 2026, Lightning Labs announced the release of LayerTree, a non-custodial Bitcoin scaling solution. This Layer 2 scaling development introduces a novel approach to on-chain efficiency. The solution employs covenant restrictions to enable multiple users to share a single UTXO, with shares tracked off-chain using a Merkle sum tree—only the tree root is submitted on-chain. Users can exit at any time with a single transaction, requiring no time locks or pre-signed steps. According to the official website, a single exit in a 65,536-slot tree costs approximately 1,020 vB, less than comparable solutions. Batch joining for 1,000 participants costs under 1 vB per person. The project relies on upcoming Bitcoin upgrades and is not yet live.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.