With Layer 1 creating the foundation of the blockchain and Layer 2 focusing on increasing scalability, Layer 3 serves to target one of the main objectives of blockchains: to cater apps to the user. Through interoperability and specific functionalities, Layer 3 is able to customize apps specifically for users. Let's look at what Layer 3’s target:
- Scalability: Like Layer 2, Layer 3 focuses on increasing scalability. Layer 3 hosts a decentralized application designed specifically for users. Therefore, designers logically want to attract customers, so their applications are both easily accessible to the public and scalable to be able to process any transactions made through their apps. This would also enable the blockchain as a whole to be able to process larger volumes of transactions, thus increasing the number of transactions it can process per second.
- Complex dApp Support: Layer 3 is meant to host dApps, so naturally it supports developers, meaning that Layer 3 infrastructure is capable of supporting complex applications. Furthermore, smart contracts, a critical part of dApps, are supported on Layer 3’s to a greater extent; complex smart contracts can be run on Layer 3’s.
- Blockchain Interoperability: One of the main focuses of Layer 3’s is blockchain interoperability, or, in other words, connecting different blockchains together. Therefore, dApps on Layer 3’s are able to connect different blockchains, like Ethereum and Bitcoin, together, serving as a bridge between these blockchains.
- Customization: On Layer 3, developers are able to customize their specialized applications to alter the governing mechanisms, rules, etc. to meet the needs of users. For example, Arbitrum Orbit allows users to choose which token they want their transaction fees to be paid with. This level of customization is unique to Layer 3’s.
- Cost-effectiveness: Layer 3’s, like Layer 2’s, offload some of the transactions from the main blockchain, and due to this, transaction fees are reduced as efficiency is increased. An example of Layer 3’s cost-effectiveness would be the Xai network’s parallel processing, which increases scalability and efficiency and leads to reduced costs.
If you want to learn more, check out the links below:
What is a layer-3 blockchain, and how does it work?
Layer 3 Blockchains: What They Are And How L3s Improve Scalability
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