L1s are responsible for fundamental functions such as transaction validation, block creation and maintaining network security.
L2s are created to increase the number of transactions per second and reduce the cost per transaction.
Today we will see what L3s are and why they are created.
What they are
L3s are blockchains that are built on top of L2s to optimize blockchain performance and user experience in a specific use case or niche.
Examples of such niches can be video games, finance applications or decentralized social networks.
Features
Putting the focus on concrete use cases creates a lot of value in different aspects.
High performance: While L2 aims to reduce the information load reaching the L1 blockchain by increasing performance, L3 solutions go one step further by tuning the blockchain structure for specific applications.
They thus achieve a higher number of transactions per second and greater speed when carrying out operations and processes within applications.
Experimentation: L3s give rise to room for innovation by allowing developers to experiment with new features and functionalities that are not feasible in more general-purpose solutions such as L1s and L2s.
Tailored security: Security models and measures are tailored specifically for each use case, creating a balance between high security and efficiency when processing transactions.
Improved user experience: By focusing on a specific niche, L3 solutions can offer better user interfaces and features designed specifically for the needs of that niche.
Example of L3
An example of an L3 is Rarichain.
RARI Chain is an L3 built on Arbitrum Orbit, designed specifically for the NFT ecosystem.
Its purpose is to create, mint and trade NFTs by applying royalties on nodes, ensuring that creators receive their royalties on every transaction.
Rarichain’s differentiators include applying royalty payments automatically, minimizing the transaction costs of NFT interactions and supporting payments in multiple currencies without the need for bridging.
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