What is Layer 3 and how does it fit into the blockchain structure?

In the blockchain world, Layer 1 and Layer 2 are already well-known terms. L1 is the foundation of blockchain networks. L2 helps with scalability. But something new has emerged. With the increasing adoption, we need something beyond scalability. Enter Layer 3.

A new layer. More flexible. Application-centered. Let's see what it's about.

Blockchain layers

First, a quick review:

• Layer 1: The main infrastructure. Bitcoin, Ethereum, Solana. Handles security, decentralization, and consensus. But struggles when many people use it.

• Layer 2: It sits on top of L1. It makes everything faster and cheaper. Think of the Lightning Network for Bitcoin or Optimism for Ethereum. It aggregates transactions and alleviates congestion.

These layers helped a lot. But it seems that something is still missing. dApps need more. Extra flexibility. That's where L3 makes sense.

What is this Layer 3 all about?

Layer 3 is somewhat new. Unlike L2, which only seeks speed, L3 focuses on specific applications. It creates an environment where developers can build dApps with special functions without sacrificing security.

What makes it special:

1. Focus on applications: It’s not about fast transactions. It’s about adapting for games, finance, social networks.

2. Super flexible: Developers gain freedom. A game can have different rules from a financial app.

3. Modular design: Facilitates updates. Change one part without breaking everything.

How the layers work together

L1 provides security. L2 brings speed. And L3? Adds customization for specific applications. Like teamwork.

The apps on L3 interact with the other layers, but have a life of their own. This allows:

• Applications that communicate with each other • Best experience for users • Extra security through isolation

Kind of each layer does what it knows best.

Where Layer 3 shines

1. Games and metaverse:

Games need speed. Many small transactions. The L3 can handle real-time microtransactions without freezing everything.

2. Decentralized social networks:

Privacy is crucial. L3 allows special mechanisms that protect data and interactions.

3. Finance (DeFi):

Exchanges between different blockchains. Loans. Private transactions. L3 handles all of this without congesting the main network.

Pros and cons

Advantages: • Customization to the extreme • Indirectly helps with overall scalability • User Focus

Challenges: • It may have security gaps • It doesn't always match well with other layers. • Regulatory issues, especially in finance

The future looks interesting

The L3 brings what was missing: blockchain applications that really work in the real world. It's not fully mature yet, but the potential is great.

Maybe we are seeing an evolution similar to the internet. Before we had simple websites. Today we have complex applications. Blockchain seems to be following a similar path.

To conclude

Layer 3 is redefining blockchain. It's still new, I won't lie. But it looks promising. It could be the missing link between decentralized technology and practical applications in everyday life.

Innovation doesn't stop. And the L3 seems to be an important step in this blockchain journey.