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

Bitcoin Reaches 20 Million Delivery Milestone as Final Coins Will Take 114 Years to Be Mined

2026-03-09

Altcoins are approaching historic stress levels as 38% of tokens are near all-time lows

2026-03-09

What Is Composability in DeFi and Why It Matters

2026-03-09
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

    Aylab joins the REI network to accelerate the growth of the scalable web3 infrastructure

    2026-03-09

    Quack AI unveils production-ready Q402 on Avalanche C-Chain to scale agent workflows

    2026-03-09

    Quantum computers can break the privacy of Zcash and Monero, says researcher

    2026-03-09

    AI-agenten betreden cryptomarkten met ondersteuning van beurzen, portemonnees, databedrijven en meer

    2026-03-09

    Pharos Network welcomes TopNod to RealFi Alliance to scale self-custody infrastructure

    2026-03-09
  • Web 3
    • NFT
    • Metaverse
  • Regulation

    SEC pressure on crypto giants fades as Trump-linked project draws $75M from Justin Sun

    2026-03-08

    Refusing new IRS crypto tax forms could cost you your exchange account

    2026-03-07

    US lawmakers consider ban on prediction markets amid bets on Iran

    2026-03-06

    De volatiliteit van Bitcoin zou in april kunnen exploderen als SEC de markt achter de ETF-leverage beoordeelt

    2026-03-06

    Crypto company Kraken secures a direct link to Federal Reserve payments

    2026-03-04
  • Analysis

    XRP’s unrealized losses soar to over $50 billion due to the oil price shock

    2026-03-09

    Bitcoin Price Drops Below $68,000, Downside Targets Come into Focus

    2026-03-09

    Bitcoin signals economic concerns as oil prices rise

    2026-03-09

    Ethereum Price Extends Pullback, Support at $1,920 Now Under Threat

    2026-03-09

    Solana (SOL) Plummets to $80, Traders Look to Critical Support Defense

    2026-03-09
  • Learn

    What Is Composability in DeFi and Why It Matters

    2026-03-09

    Hoeveel Crypto-portemonnees moet je echt hebben?

    2026-03-09

    What Is Wrapped ETH (WETH) and Why Do You Need It in DeFi?

    2026-03-06

    What Is Crypto Protocol and Why Coins Need It

    2026-03-04

    Wat is Liquid Proof-of-Stake: uitgelegd voor beginners

    2026-03-02
  • 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  EMURGO Partners with Zilliqa to Improve Blockchain Interoperability, Liquidity and Governance Using Cardano's Web3 Technologies

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  Ethereum layer 2 Mantle Network uses Chainlink to strengthen cross-chain capabilities

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  What Is a Layer 2?

Source link

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

Related Posts

Aylab joins the REI network to accelerate the growth of the scalable web3 infrastructure

2026-03-09

Quack AI unveils production-ready Q402 on Avalanche C-Chain to scale agent workflows

2026-03-09

Quantum computers can break the privacy of Zcash and Monero, says researcher

2026-03-09

AI-agenten betreden cryptomarkten met ondersteuning van beurzen, portemonnees, databedrijven en meer

2026-03-09
Add A Comment

Comments are closed.

Top Posts

Bitcoin becomes a problem: $ 10.3b dilution risk tail micro strategy in the face

2025-09-30

Why is Bitcoin going up? How High Can Bitcoin Go?

2024-12-05

Solana (SOL) and Altcoins Still Have Huge Room to Rise, According to Macro Guru Raoul Pal

2023-11-14
Editors Picks

ERC-3643 explores ways to achieve RWA tokenization compliance

2024-01-21

Bitcoin: This ratio points to a possible BTC range – how?

2025-06-18

Solana (SOL) aims for recovery run, resistance at $155 now back in view

2025-11-20

Accumulation zone points to upside potential, $20 in sight

2024-01-15

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

Bitcoin Reaches 20 Million Delivery Milestone as Final Coins Will Take 114 Years to Be Mined

Altcoins are approaching historic stress levels as 38% of tokens are near all-time lows

What Is Composability in DeFi and Why It Matters

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.