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https://forkast.news/what-is-layer-3-key-to-blockchain-future/
Layer 1s are characterized as the foundational blockchains like Bitcoin and Ethereum that have their own native cryptocurrency used to reward those who work to secure the network itself.
Layer 2s are protocols built on top of L1s designed to increase transaction speed and mitigate scaling difficulties of layer 1s while leveraging the security of the base chain. For example, Arbitrum is an L2 created to improve Ethereum’s speed of processing transactions as well as overall flexibility and scalability, and it has given birth to a broad range of DeFi protocols.
Layer 3s, on the other hand, offer even higher levels of customizability. At this layer, developers can carry out customized designs that L2s cannot easily achieve, especially for lower-cost execution and privacy-preserving functionalities.
- use cases are for custom blockchain solutions, not general purpose blockchain solutions
- L3s enable customized scaling and realize important functionalities — such as privacy — that L2s can’t effortlessly achieve on their own. L3s increase computation speeds and scalability of single applications by not having to share ZK-circuits with other applications on a single chain.
The current L2 serves as a general-purpose scaling, while L3 accomplishes customized scaling.
For example, an L3, which adopts customized circuits depending on the demand of a specific decentralized application, can achieve better performance. Another example is Validium as L3. This design provides higher levels of throughput at a relatively low cost for decentralized apps by avoiding pushing compressed data to the L1 and utilizing validators to secure the digital asset. L3s can be employed as low-cost and high-performance scaling solutions that allow projects to have more choices for potential solutions, depending on their particular use cases.
L3 challenges now
- One of the main challenges is the lack of standardized infrastructure for L3s. Since L3s are built on top of L2s, they require a standard infrastructure to operate efficiently.
- more development in ZK-rollup technology, which is the underlying technology for L3s. ZK-rollups have the potential to significantly improve the efficiency and scalability of L3s
The Graph - billable 3rd Party Blockchain Query and Indexing Service
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