Coinranking
| # | Coins | Price | 24h | ||
|---|---|---|---|---|---|
| | |||||
| | 1 |  | $ | -11.87%  | |
| | 2 |  | $ | -1.94%  | |
| | 3 |  | $ | -2.28%  | |
| | 4 |  | $ | -7.57%  | |
| | 5 |  | $ | -1.22%  | |
| | 6 |  | $ | -1.77%  | |
| | 7 |  | $ | -1.25%  | |
| | 8 |  | $ | -1.40%  | |
Top gainers
| Coins | Price | 24h | |||
|---|---|---|---|---|---|
| | | $ | -1.94% | ||
| | | $ | -2.28% | ||
| | | $ | -7.57% | ||
| | | $ | -11.87% | ||
| | | $ | -1.22% | ||
| All gainers | |||||
What are Layer-3 coins?
Layer 3 coins are like specialized cryptocurrencies that operate within the application layer of a blockchain network, offering additional features and improving how different blockchains can work together. They're built on top of Layer 2 solutions, which are built on Layer 1 blockchains.
These Layer 3 networks make blockchain systems better at handling more transactions and processing them faster by optimizing consensus mechanisms and data structures. They also improve interoperability, allowing transactions to occur across blockchains more easily.
For example, the Xai network enhances the efficiency of Web3 games, while Arbitrum Orbit simplifies the deployment of dedicated apps. Although there's no universal definition for Layer 3 coins, they can include apps, services, or protocols developed using Layer 2 solutions. They can vary in cost, consensus method, and security, depending on how they're implemented.
Layer 1 vs. Layer 2 vs. Layer 3
Layer 1 blockchains serve as the foundational layer for confirming transactions and adding blocks. However, they often grapple with the blockchain trilemma, necessitating trade-offs between scalability, decentralization, and security.
Layer 2 solutions address scalability challenges by operating off-chain, atop Layer 1 blockchains, enhancing scalability and reducing gas fees.
In contrast, Layer 3 protocols build upon existing Layer 2 solutions to furnish interoperability and application-specific features, offering high customization while leveraging the security of the underlying Layer 1 blockchain.
Advantages of Using Layer 3 Blockchains
Layer 3 solutions tackle important problems in blockchain tech, like making it scale better, giving developers more freedom to build complex apps, and making it easier for different blockchains to work together. They also let users customize things more, lower transaction costs, and make blockchain tech easier for more people to use, encouraging more people to get involved.
How Do Layer 3 Blockchains Improve Security?
Layer 3 blockchains, operating at the application layer, bolster security by implementing robust consensus mechanisms, serving as a testing ground for privacy-centric features, and drawing security from Layer 1 blockchains.
These security enhancements, combined with the scalability and customization benefits of Layer 3 blockchains, make them an attractive option for DApps requiring enhanced security and privacy.
Examples of Layer 3 Blockchains
Layer 3 blockchains are the most advanced in the crypto world, providing better scalability, easy connections between different systems, and lots of choices for developers.
Popular examples include Uniswap and Sushiswap for decentralized finance, OpenSea and Rarible for buying and selling unique digital items, and Aragon and DAOstack for managing decentralized organizations.
New projects like Orbs, Arbitrum Orbit, and zkSync Hyperchains are also pushing the boundaries of blockchain tech, offering unmatched scalability, options for customization, and connections between systems.
In summary, Layer 3 coins and blockchains are an exciting part of the cryptocurrency world, giving decentralized apps more power and flexibility.
They do this by building on other blockchain solutions and using the security of the foundational blockchains.
Final thoughts
Layer 3 coins and blockchains, found in the application layer of blockchain networks, offer better features and work well with other systems. They build on Layer 2 solutions and use the security of Layer 1 blockchains to handle growth and make transactions happen between different blockchains.
By making sure agreement methods and data structures work better, Layer 3 networks can handle more transactions at once. Examples like Uniswap, Sushiswap, and new projects like Orbs show how Layer 3 technology is changing decentralized applications.