Blockchain infrastructure has evolved significantly in recent years to include layer 1 and layer 2 networks, with the emergence of layer 3 networks being one of the latest developments in the space. Layer 1 networks serve as the base layer for blockchain infrastructure, while layer 2 networks are built on top of layer 1 blockchains to enhance scalability and efficiency. Layer 3 networks, on the other hand, are designed to host decentralized applications (dapps) and improve their performance by addressing issues in user-friendliness, efficiency, and functionality.
Layer 2 networks, also known as rollups, were introduced to address scalability issues on blockchains like Ethereum. While layer 2 networks focus on improving the scalability and efficiency of the chains they are built on, layer 3 networks aim to improve dapps’ scalability and efficiency by providing an environment for more advanced dapps with complex smart contracts. Layer 3 networks can be customized for specific application use cases and typically house one dapp to enable high-speed performance without congestion found on lower layers.
Developers can create more advanced dapps on layer 3 networks that may not be feasible on layer 1 or 2 networks due to scalability and cost limitations. Layer 3 networks offer a more flexible infrastructure for dapps, allowing for features like privacy, user friendliness, and interoperability across layers. The demand for sophisticated and scalable solutions is expected to grow as layer 2 networks continue to expand, making layer 3 networks a crucial component in the future of blockchain infrastructure.
Examples of layer 3 networks include DEGEN Chain, built on top of Arbitrum’s Orbit layer 3 architecture, and Xai, an Arbitrum layer 3 designed for gaming applications. DEGEN Chain provides an ultra-low-cost environment for creators and developers to build user-focused applications, while Xai offers reduced fees and account abstraction for a smoother user experience in gaming applications. These layer 3 networks showcase the potential for innovative solutions in the blockchain space, catering to the evolving needs of developers and users alike.
In conclusion, layer 3 networks play a vital role in improving the performance and scalability of decentralized applications, offering a more flexible environment for developers to create advanced dapps. With features like privacy, user friendliness, and interoperability, layer 3 networks have the potential to bridge the gap between niche crypto products and mainstream adoption. As developers continue to build more complex products that push the boundaries of layer 1 blockchain rails, layer 3 networks are likely to proliferate alongside layer 2 networks, shaping the future of blockchain infrastructure.
