The blockchain has evolved rapidly in a relatively short time. With the initial arrival of Bitcoin and Ethereum, the first foundations emerged.
Since then it has expanded into a multi-layered architecture. Each layer adds functionality. Each level solves a problem. Each layer pushes the technology forward.
The Layer 1 blockchains are the foundation: they provide security, consensus and the foundation of the blockchain.
The Layer 2 solutions are built on top: they make everything faster and cheaper.
The Layer 3 builds on top of both. In this higher layer of the architecture, applications and interoperability come into play.
Layer 3: The Application Layer of the Blockchain
The blockchains of Layer 3 are based on Layer 2. Their main function is not only to improve performance, but to expand and extend the capabilities of blockchain technology.
The goal is to enable connectivity between blockchains. They provide the hosting layer for decentralised applications (DApp). And they do so with the performance and scalability we have come to expect from this technology.
You can imagine each layer as a step in a hierarchy of functions:
- Layer 1 is the basic structure.
- Layer 2 makes a single blockchain scalable.
- Layer 3 connects blockchains and extends their functionality.
Why is Layer 3 Important?
Scalability is an issue, but so is interoperability. Developers also want a secure environment in which to build their DApps.
Layer 3 offers the solution. It allows the hosting of a single DApp per network. This means no congestion, no bottlenecks and no loss of performance.
It also offers improvements in consensus and data management. Transactions can move faster with Layer 3. And the processing capacity of the network increases dramatically.
But most importantly, Layer 3 connects blockchains, allowing communication between different networks. Something Layer 2 alone cannot do.
Distinguishing Features of Layer 3
Layer 3 solutions offer a range of features that combine performance, customisation and applications.
- Individual DApp Networks
A single DApp for each network. Each runs independently, avoiding congestion or interference from other apps. - Improved Consensus
Layer 3 offers increased throughput and speed. - Interoperability
Connects blockchains with each other to enable smooth communication. - Customisation
Allows developers to create bespoke solutions for each DApp, including dedicated private blockchains with built-in security.
This distinguishes Layer 3 from the other layers: it is not only about speed, but also about flexibility and scope.
Layer 1, Layer 2 and Layer 3: The Differences
Here is a quick comparison:
- Layer 1 - The basic layer. Main functions of security, validation and consensus.
- Layer 2 - A second layer to improve performance: lower costs and higher transaction speeds.
- Layer 3 - The application layer: where real use cases are hosted and blockchains are interconnected.
Each layer builds on the previous one. Each layer adds a new function.
Layer 2 vs. Layer 3: The Comparison
Layer 2 and Layer 3 may seem similar. In part they are: both improve scalability and aim to make the blockchain usable on a large scale.
But there is one crucial difference:
- Layer 2 focuses on a single blockchain, increasing speed and reducing costs within it.
- Layer 3 has a broader perspective. It aims at interoperability, applications and the creation of multi-chain ecosystems.
In summary: Layer 2 is about performance, Layer 3 is about expanding the entire ecosystem.
From Base Layers to Application Layers
Each step upwards brings a new focus:
- Layer 1 is about trust.
- Layer 2 makes that trust scalable.
- Layer 3 adds applications, cross-chain tools, and advanced functionality.
In addition, Layer 3 marks a shift: from infrastructure and foundations to real-world adoption.
Why Layer 3 Will Matter More and More
The blockchain of the future will not live in silos or on a single network. It will need multiple networks working together. Layer 3 makes this possible.
Some of the benefits of Layer 3 include:
- Multi-chain financial systems.
- Applications in the metaverse with no lag.
- Private and customised enterprise-level blockchains.
Layer 3 is the bridge between speed, scalability and interoperability in a single stack.
Web3 Needs Layer 3
Layer 3 is not just the next blockchain update: it is the step that unlocks the full power of the Web3 for the masses.
Layer 3 takes the benefits of Layer 1 and Layer 2, resolves their inherent limitations and adds a new dimension: connectivity and usability.
As Web3 grows and evolves, Layer 3 will be the enabler of true adoption.
