Close Menu
  • News
    • Bitcoin
    • Altcoins
    • DeFi
    • Market Cap
  • Blockchain
  • Web 3
    • NFT
    • Metaverse
  • Regulation
  • Analysis
  • Learn
  • Blog
What's Hot

Manadia joins the Origins Network to advance scalable AI-powered blockchain ecosystems

2026-06-24

The US Treasury Department’s $10 billion scam alert shows why crypto is rushing itself into the police force

2026-06-24

0x opens swap API for AI agents with USDC Pay-Per-Request model

2026-06-24
Facebook X (Twitter) Instagram
  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
  • Advertise
Facebook X (Twitter) Instagram
Bitcoin Platform – Bitcoin | Altcoins | Blockchain | News Stories Updated Daily
  • News
    • Bitcoin
    • Altcoins
    • DeFi
    • Market Cap
  • Blockchain

    Manadia joins the Origins Network to advance scalable AI-powered blockchain ecosystems

    2026-06-24

    Chainlink brings Samsung, Toyota and Sony prices on-chain with APAC stock streams

    2026-06-24

    Aztec reaches L2Beat Phase 2 after Governance revokes ownership of the rollup contract

    2026-06-24

    What is MEV? Maximal Extractable Value, the invisible tax on crypto

    2026-06-24

    Orix AI partners with PAYGO to enable AI-powered Web3 payments

    2026-06-23
  • Web 3
    • NFT
    • Metaverse
  • Regulation

    The US Treasury Department’s $10 billion scam alert shows why crypto is rushing itself into the police force

    2026-06-24

    Stablecoins in Britse ponden gemaximeerd op $53 miljard, terwijl de Bank of England stablecoin-regels vastlegt

    2026-06-22

    De Amerikaanse toekomst van crypto-daders zal worden bepaald door hoe toezichthouders besluiten ze te noemen

    2026-06-22

    De MiCA-deadline zal waarschijnlijk kleinere crypto-apps naar gelicentieerde bewaarrails verplaatsen

    2026-06-22

    dollar liquidity may already be too far ahead

    2026-06-22
  • Analysis

    Ethereum Foundation bezuinigt met 20% op personeel, terwijl ETH YTD met 44% daalt ondanks recordgebruik

    2026-06-24

    CZ noemde het no-KYC-model van Hyperliquid “geweldig”

    2026-06-24

    South Korea’s KOSPI crashes 10% as regulator admits ETF error

    2026-06-23

    Trumps quantum computing-push zet 449 miljard dollar aan ‘blootgestelde Bitcoin’ weer in de schijnwerpers

    2026-06-23

    Solana subsidizes large traders before the markets in the chain prove that the activity can continue to exist

    2026-06-23
  • Learn

    Most Profitable Crypto to Mine in 2026: Best Altcoins for Mining

    2026-06-23

    Bitcoin Alternatives: Our Top Altcoin Picks for You in 2026

    2026-06-23

    What Is a Bull Flag Pattern in Crypto and How to Use It

    2026-06-20

    What Is OTC Trading? Over-the-Counter Trading Explained

    2026-06-20

    The Top 10 Bitcoin Wallets in 2026

    2026-06-20
  • Blog
Bitcoin Platform – Bitcoin | Altcoins | Blockchain | News Stories Updated Daily
Home»Blockchain»What are Layer 3 Networks? Improving functionality and interoperability
Blockchain

What are Layer 3 Networks? Improving functionality and interoperability

2024-07-05No Comments5 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email

Blockchain The infrastructure has evolved to include layer 1 and layer 2 networks. A more recent development is the emergence of so-called ‘layer 3’ networks.

So what are layer 3 networks, and how do they differ from layer 1 and layer 2 networks?

What is a layer 3?

To understand what Layer 3 networks are, we must first look at the Layer 1 and Layer 2 networks on which they reside.

Layer 1 networks are the base layer of blockchain infrastructure and include blockchains such as Ethereum or Bitcoin. They provide the underlying framework for a blockchain network, validating transactions and reaching consensus.

However, Layer 1 networks can experience scalability bottlenecks caused by throughput and transaction costs.

That’s where layer 2 networks like Arbitrum, Optimism and Blast come into the picture. They are networks that live on top of the layer 1 blockchain and deploy a variety of scaling solutions to help improve their efficiency. This may involve bundling transactions or processing transactions outside the chain.

Layer 3 networks are one of the newest developments in the blockchain space, building on top of the established infrastructure of layer 1 and layer 2 blockchains.

Their primary function is to host decentralized applications (dapps) so that they can perform at an optimal level without suffering from the network congestion of the underlying layers.

Layer 3 also focuses on scalability and efficiency, just like the Layer 2 they are built on, but Layer 3 does this to promote interoperability and improve the performance of complex dapps.

Low 2s vs. low 3s

Layer 2s (also called rollups) were first introduced as a blockchain layer on top of the layer 1 Ethereum network. They were intended to address Ethereum’s scalability issues, and for the most part they did a pretty good job.

See also  Kroma and Micro3.io are working together to transform decentralized social networks into Web3

While layer 2 focused on improving the scalability and efficiency of the chain they are built on, layer 3 aims to address usability, efficiency, and functionality issues, and typically focuses on dapps as their primary usage scenario.

The intended function of a layer 3 network is to improve the scalability and efficiency of the decentralized applications (dapps) built on top of it. They typically contain only one dapp, allowing it to perform at high speeds, without the congestion found on layer 1 and layer 2 networks.

For developers, layer 3s are an environment where they can create much more advanced dapps using complex ones smart contracts that may not be feasible on layer 1 or 2 networks due to scalability and cost constraints. They can also be customized for specific application use cases in ways that are not possible for Layer 2 because they do not have the same limitations.

Layer 3s are not exclusive to Ethereum; other layer 1 networks such as Cosmos and its IBC protocol also provide solutions for creating layer 3 networks.

Examples of layer 3 networks

If you’ve spent any time on the crypto social network Farcaster, you’re probably familiar with DEGEN and Degen Chain. Originally a channel on Farcaster, the Degen community launched a token on layer 2 network Base called DEGEN, mainly used to tip people on Farcaster. The token grew rapidly and soon after, the pseudo-anonymous team launched its own L3, Degen Chain.

Degen Chain was built using Arbitrum’s Orbit Layer 3 architecture, but launched on top of that Coin base-incubated Ethereum layer 2 network base. The goal is to serve as an ultra-low-cost environment for both degens and developers to create fun and user-oriented applications based primarily on speculation.

See also  Akave launches decentralized data layer on Avalanche with Akave Cloud

Another popular Layer 3 is Xai: an Arbitrum Layer 3 designed for gaming applications that offers lower costs and a level of account abstraction not available on Layer 2s.

Account abstraction is important when it comes to consumer-facing dapps like video games, to ease the onboarding process for regular users and remove the complicated series of steps that blockchain-based products often entail.

Xai retains the core functionality of Arbitrum’s Layer 2, but uses optimistic rollups to handle transactions, making it cheaper and faster than the layer it is built on.

The future of layer 3 networks

As layer 2s continue to grow and increase in number, the demand for more advanced and scalable solutions is expected to grow along with them. Layer 3s create a more flexible infrastructure for dapps, enabling features such as privacy, usability (via account abstraction), and interoperability between layers.

When it comes to gaming, account abstraction is crucial. Complex dapps like video games need a more flexible environment to succeed – one that retains core elements of Web3’s decentralized ethos (such as players owning their own in-game items), but also provides the additional functionality needed to create dapps from a ‘niche’. crypto products” to “mainstream.”

Similarly, with respect to privacy, complex cryptographic techniques required to create on-chain privacy become much more feasible and cost-effective to implement.

Providing real improvements for dapps and the developers trying to build on Layer 1 and Layer 2 networks, Layer 3 networks will likely proliferate alongside Layer 2 networks in the coming years as developers build more complex products that challenge current transcend limitations of layer 1 blockchain rails. .

See also  Multisynq Taper Chainlink-Build to promote real-time application layer

Source link

functionality improving Interoperability Layer Networks
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Manadia joins the Origins Network to advance scalable AI-powered blockchain ecosystems

2026-06-24

Chainlink brings Samsung, Toyota and Sony prices on-chain with APAC stock streams

2026-06-24

Aztec reaches L2Beat Phase 2 after Governance revokes ownership of the rollup contract

2026-06-24

What is MEV? Maximal Extractable Value, the invisible tax on crypto

2026-06-24
Add A Comment

Comments are closed.

Top Posts

How Bitcoin Has Affected the Shiba Inu Price and What You Can Do About It

2024-04-28

Mensen verhandelden voor 25 miljard dollar aan crypto-aandelentokens die hen nog geen aandeelhouder maken

2026-03-10

What to expect for the XRP price this month according to historical data

2023-10-13
Editors Picks

Why Bitcoin fell to $96,000 after the US economic report

2025-01-08

A Test for Bitcoin Bulls at $69K – What to Look For?

2024-07-26

Bitcoin’s year-end target of $100,000 remains in place as BTC sentiment resets. This is why

2026-06-09

XRP is already driving real banking activity, Evernorth says, and more growth is expected

2026-06-04

Our mission is to develop a community of people who try to make financially sound decisions. The website strives to educate individuals in making wise choices about Cryptocurrencies, Defi, NFT, Metaverse and more.

We're social. Connect with us:

Facebook X (Twitter) Instagram Pinterest YouTube
Top Insights

Manadia joins the Origins Network to advance scalable AI-powered blockchain ecosystems

The US Treasury Department’s $10 billion scam alert shows why crypto is rushing itself into the police force

0x opens swap API for AI agents with USDC Pay-Per-Request model

Get Informed

Subscribe to Updates

Get the latest news and Update from Bitcoin Platform about Crypto, Metaverse, NFT and more.

  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
  • Advertise
© 2026 Bitcoinplatform.com - All rights reserved.

Type above and press Enter to search. Press Esc to cancel.