What is Layer 3? This Article Reveals the Evolutionary of Layer 1 to Layer 3.
When we talk about blockchain, keywords such as decentralization, high decentralization and freedom of operation mostly come to mind. When developers enjoy the dividends of the on-chain world and users enjoy the functions and services on the chain, they may not have thought about the role played by the behind-the-scenes hero — Layer, supporting all this operation.
Layer, a web pop-layer component, as a facility to realize a rich and convenient operation experience of the blockchain, supports the performance of on-chain operations. Well-known chains such as Ethereum are built on Layer 1. The development of Layer 2 has also been a hot topic in recent years. But what are the advantages of the recently quietly emerging Layer 3?
This article will focus on Layer 3 and analyze how evolutionary from Layer 1 to Layer 2 to Layer 3. It allows us to understand the necessity and practical significance of the birth of Layer 3.
The leader of Layer 1 is a number of blockchain smart contract platforms represented by Ethereum, which compete with Ethereum with a high degree of decentralization and higher transaction throughput, forming the vanguard of the Layer 1 camp. However, without infrastructure architecture of Ethereum, the development of chains is difficult. Hence, many Layer 1 have adopted an “EVM compatible” strategy to achieve the development of Ethereum’s shortcomings and self-advantage.
However, the rise of Layer 1 has brought challenges and pressures to operate the platform. The limited function of the Ethereum unable to carry more and more execution and computing volume in the rapid development of the ecosystem. It has to pay high costs to complete transactions in the congested environment of chains.
As a result, Layer 2 came out under fee reduction and expansion. The basic optimization logic of Layer 2 is to strip and layer the public chain function, leaving the consensus mechanism that provides security in Layer 1 and decentralizing the calculation and execution to Layer 2. So that the chains become the settlement layer of Layer 2, which is easier to implement and operate compared with mechanisms such as cross-chain and fragmentation.
The popularity of Layer 2 and the significant reduction in transaction costs can be said to be a very successful industry change. Under the premise of maintaining a decentralized model, Layer 2 maximizes operational efficiency. But it is still insufficient in highly customized application scenarios. Since the blockchain can be layered, why not provide an independent layer for services? Wouldn’t that make it more personal and easier to use? — This was the original inspiration for Layer 3.
Layer 3 is nested on Layer 1 just as Layer 2 is nested on Layer1. There is also a nested and recursive relationship between it and Layer 2. Powerful scalability is achieved through the multiplication effect of recursive proof, which grows exponentially. The application designer has more control over the associated technology stack. Accelerate the technical turnover rate and functional operation efficiency of the blockchain by customizing the data model.
What is Layer 3? Evolutionary History Starting with Layer 1
The necessity of the existence of Layer 3 lies in the choice of application scenarios that may actually be touched. We can explore such a situation:
What about developing a DApp that can inherit the users and security of Ethereum, but doesn’t want to make just one contract?
If you exclude Cosmos, Polkadot, or Alt-L1, you can only choose Rollups. But how can developing an L2 rollup be incredibly expensive?
Use the L3 SDK to develop an application-specific rollup, Layer 3. In short, Layer 2 is suitable for solving the problem of cost reduction and expansion, while Layer 3 is suitable for applications with specific scenario requirements.
Recently, Ethereum founder Vitalik also summarized when talking about the real-world application of Layer 3: “L2 is used for scaling, L3 is used for customizable expansion. This customization is precisely matched with the special scenarios used by users and the application direction preferred by developers.” At the same time, L3 has the weak trust extension feature, leaving data availability to trusted third parties or committees, further protecting user privacy and security.”
Furthermore, if Layer 3 can be applied on a large scale, then privacy computing can be applied to any transaction anytime and anywhere. We all know that the data in the blockchain is encrypted through Zero-Knowledge Proofs, smart contracts, etc. to achieve privacy calculation between data. But this demand is currently supported by the infrastructure of Layer 2. If the privacy computing function is successfully placed on Layer 3, its powerful scalability may be able to make privacy-preserving transactions on Layer 2 possible.
And then, the regression of Layer 2’s criticized interoperability and composability can be compensated for by Layer3’s performance. The cross-chain channels currently used between Layer 1 and Layer 2 are inefficient and costly to operate. Shifting combinations between layers to Layer 3 is a good choice and easier to manipulate and implement.
Looking Ahead to Layer 3: An Important Role in Web3
It can be seen that in the evolutionary history from Layer 1 to Layer 2 to Layer 3, the need for continuous technical improvement and enhanced experience has prompted Layer to continuously iterate and upgrade to advanced versions. These upgrade processes have revolutionized our perception of blockchain, so will Layer 3 be just a flash in the pan?
At present, the biggest foothold to support the survival and development of Layer 3 is its ability to provide customized application services for specific scenarios. Layer 3 may open up a new space for Ethereum or blockchain, like Rollup.
The unique advantages of Layer 3 in application scenario services have greatly improved the application-level dilemma. It has been difficult to break through in the blockchain industry for a long time. High computing capacity, large capacity bearing, personalized customization and other characteristics are the obvious technical dividends brought by the mature solution of Layer3. It also urge a batch of blockchain applications for the Web3 era to accelerate the progress of research and development. Such as on-chain games or being one of the first projects to deploy Layer 3.
However, while seeing the steady development of Layer3, we also need to be alert to the risk that the content of many current Layer3 services is contrary to user needs. If these projects that deviate from user needs and scenario-specific goals are not optimized or improved, then Layer3 will also become a hidden killer that wastes market resources and development space.
For the blockchain industry, the layered model is an excellent solution for capacity expansion. Layer 3 is just a brand new starting point. Along with the refinement and maturity of technology, more additional layers such as Layer 4 and Layer 5 may meet us in the future. They are expected to become an important part of the underlying logic of technology development in the Web3 era.
