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What Are Layer 3 Blockchains?

By Published On: February 7, 20242.3 min read0 Comments on What Are Layer 3 Blockchains?

Customizable application-specific networks enable Web3 developers to optimize performance without […]

Customizable application-specific networks enable Web3 developers to optimize performance without sacrificing security.

Scaling solutions in the form of Layer 2 blockchains have become a mainstay in modern DeFi over the past two years. As the blockchain ecosystem and its user base continue to grow, developers are continuously looking to improve their applications’ performance.

Layer 2 networks allow DeFi protocols to offer their users incredibly low transaction fees compared to Ethereum mainnet without sacrificing the security guarantees of the underlying Layer 1 blockchain.

While these fees are attractive to the current consumer base, Layer 2’s are still susceptible to issues such as network congestion and lack of customizability. Many dApps that expect to scale to massive consumer bases will demand a high volume of concurrent transactions and can also require more niche functions that may not be ideal for other dApps co-existing on the Layer 2.

Layer 3 blockchains offer dApps a highly customizable and interoperable network that is built on top of a Layer 2. With this customizability, developers can implement solutions for targeted requirements and can spread out the workload that comes with extremely high transaction volumes. Being able to target niche features and issues allows for complex dApp design that can increase both performance and accessibility for users, while still inheriting the security benefits of the underlying Layer 1.