Layer 3 in crypto: what's really changing? Discover 3 flagship projects

Since the emergence of blockchain in 2008, the technology has undergone profound transformations. Faced with scalability challenges, developers have gradually created additional solutions: Layer 2 and, more recently, Layer 3. These new layers directly address the limitations of existing blockchains. But what truly distinguishes a Layer 3 from the previous layers? Which projects embody this innovation?

Understanding Layer 3: Scalability and Application Specialization

Layer 3 is an additional layer built on top of a Layer 2, which itself relies on a main blockchain. This cascading architecture aims to create a nearly optimal decentralized ecosystem by combining maximum scalability and interoperability.

Unlike Layer 2 solutions that aim to improve overall performance, Layer 3 focuses on specialization. It hosts decentralized applications (dApps) and features specifically designed for particular use cases. This could be a dedicated chain for gaming, a protocol bridge, a decentralized exchange, or other vertical services.

This modular approach offers remarkable flexibility: each Layer 3 can optimize its architecture for its community’s needs without compromising the overall experience of the underlying network.

Xai: A Layer 3 Dedicated to the Web3 Gaming Revolution

Xai represents one of the most promising Layer 3 applications. Developed by Offchain Labs, this project is built on Arbitrum, a Layer 2 of the Ethereum network. Its mission? To transform the Web3 gaming industry by creating a fully decentralized gaming blockchain.

On Xai, users gain true ownership of their digital assets. They can own, sell, and trade rare items within their favorite games—a revolutionary capability compared to traditional gaming models. The $XAI token functions as the native currency of this ecosystem, facilitating transactions and rewarding validators.

Regarding valuation, $XAI is currently trading at $0.01, reflecting significant volatility in the gaming-oriented crypto space. This price fluctuation highlights the importance for users to evaluate the project’s fundamentals before investing.

Degen: How This Layer 3 Becomes the Incubator for Meme Coins

Degen follows a remarkably different trajectory. Launched in Spring 2024, this Layer 3 is built on Base, itself a Layer 2 built on Ethereum. The network quickly captured attention by attracting over 2,000 token creators within days of its launch.

This exponential growth is explained by Degen’s positioning among meme coin developers, who found it a fertile ground for experimentation. But the project isn’t limited to meme coins. It is gradually expanding into NFTs and collaborating with major entities like Rarible to enrich its ecosystem.

$DEGEN, the platform’s native token, is priced at $0.00. While this price may seem symbolic, it represents liquidity and market cap challenges typical of young, rapidly expanding Layer 3s.

Orbs: A Multi-Chain Layer 3 to Democratize Scalability

Orbs stands out with a distinctly different approach. Founded in 2017, this Layer 3 adopts a Proof-of-Stake with Randomness (RPoS) protocol and focuses on solving scalability issues affecting Layers 1 and 2.

Orbs’ originality lies in its multi-chain architecture. The network collaborates simultaneously with Ethereum, BNB Chain, Avalanche, and Polygon, providing a decentralized experience without relying on a single blockchain. This multi-chain model is particularly attractive for protocols seeking to maximize their reach.

The $ORBS token plays a fundamental role in this mechanism. It fuels the incentive system that determines validator selection, ensuring robust decentralization of the network.

Currently valued at $0.01, $ORBS reflects relative stability compared to the extreme volatility of other Layer 3s, suggesting a mature and engaged user base involved in staking mechanisms.

Layer 3 symbolizes the progressive maturation of the blockchain ecosystem, where each layer can specialize to deliver maximum value to its users.