{"id":17335,"date":"2024-09-27T13:00:00","date_gmt":"2024-09-27T10:00:00","guid":{"rendered":"https:\/\/forklog.com\/en\/scaling-at-full-tilt-what-is-happening-on-blockchain-layer-3\/"},"modified":"2024-09-27T13:00:00","modified_gmt":"2024-09-27T10:00:00","slug":"scaling-at-full-tilt-what-is-happening-on-blockchain-layer-3","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/scaling-at-full-tilt-what-is-happening-on-blockchain-layer-3\/","title":{"rendered":"Scaling at full tilt: what is happening on blockchain Layer 3"},"content":{"rendered":"

As the number of scaling solutions grows, so does demand for their quality and usefulness. In April 2024, Vitalik Buterin backed<\/a> a sceptical view of L3. He pointed to other, potentially \u201clighter\u201d ways to achieve the same cost savings.<\/p>\n

In September, Buterin urged L2 teams to \u201cget their act together\u201d, saying that from next year he would not publicly mention projects below \u201cstage 1+\u201d.<\/p>\n

The L-suffixed alphabet soup has stirred debate in the community. ForkLog examines how scaling works via what is, for now, the highest tier of customisation \u2014 Layer 3.<\/p>\n

What is happening across blockchain layers<\/h2>\n

Beyond the fundamental<\/span> ones, there are four blockchain layers: Layer 0 (L0), L1, L2 and L3. Each hosts distinct solutions, but only L1 typically has a complete architecture. The others are chiefly for scaling.<\/p>\n

The zero layer<\/strong>, also called the communication layer, provides physical infrastructure (cables, data centres, nodes) or enables cross-chain compatibility so that dapps<\/span> can be built across multiple blockchains. <\/strong>In both cases it lays the groundwork for interoperability.<\/p>\n

Cosmos and Polkadot\u2019s parachains fit here. Because these projects span functions across layers, they are also described as L1 and L3 networks.<\/p>\n

On L1 (the base layer)<\/strong> sit full-fledged, independent blockchains such as Solana and Ethereum. They secure the network as new blocks are created and transactions are finalised using Proof-of-Work or Proof-of-Stake.<\/p>\n

In its current form, Ethereum is hard to imagine without an array of scaling mechanisms \u2014 Layer 2 (L2) solutions<\/strong>. The rise of optimistic and ZK rollups such as OP Mainnet, Arbitrum and Polygon has helped dapp users save significantly on fees while speeding up execution.<\/p>\n

A comparable stack has emerged atop Bitcoin \u2014 Bitcoin Layers<\/strong>. State channels, rollups and sidechains offset the first cryptocurrency\u2019s architectural limitations and allow programmable smart contracts, as in Ethereum. Projects such as Rootstock, Merlin Chain<\/a> and BOB add DeFi<\/span> features, increasing transaction speed and accessibility.<\/p>\n

How Layer 3 works<\/h2>\n

Buterin was among the first to use<\/a> the term Layer 3 in 2015 in the context of multi-layer blockchain scaling. Almost all existing third-layer solutions today are built around the network of the second-largest cryptocurrency.<\/p>\n

On L3, developers tackle bespoke configuration of dapps on top of L2. Also called the application layer, it is akin to Layer 0 but, unlike L0, achieves interoperability within existing blockchains. Customising specific projects extends functionality and boosts performance.<\/p>\n

Rollups, sidechains and other L2 constructions have allowed third-layer blockchains to perform complex off-chain computation while retaining strong base security and throughput. Via protocols, cross-chain bridges and configurable scaling, L3 improves the experience of dapps in decentralised finance, GameFi, RWA and DeSoc<\/a>.<\/p>\n

Additional third-layer scalability patterns include:<\/p>\n