Article for Understanding Layer 3: Is it More Efficient than Layer 2?

[evelynnn]

The Layer 1 and Layer 2 tracks have grown in the recent years of blockchain development, and the Layer paradigm is still evolving. Last year, Layer 3 concepts and ecosystems planning for several use cases were released by Ethereum scaling solution StarkWare. The layer 3 chain, dubbed "Opportunity," is being developed by zkSync with the goal of enhancing the scalability of the zkSync blockchain infrastructure. This announcement was made in October of this year.
What is Layer 3 and what are its advantages? Before introducing Layer 3, let’s re-understand Layer 1 and Layer 2.

Layer 1 refers to public chains that do not need to be built on top of other chains and can operate completely independently. ETH, Solana, Avalanche, etc. Taking Ethereum as an example, Ethereum is currently the smartest futures and DAPP running platform, as well as the public chain with the largest locked cryptoassets and transaction volume. With the explosive growth of the virtual currency market in recent years, the scale of activities such as on-chain remittance and future calls is also expanding. Even if the market isn't as good, users still have to deal with problems like grid congestion and high gas prices. Therefore, solving the scaling problem of Ethereum has always been one of the key issues of the crypto community, and this is the reason for the birth of Layer 2.

Built on Ethereum, Layer 2 is a stand-alone ecosystem that depends on Ethereum to provide security. In essence, Layer 2 involves layering and stripping the public chain's functions, leaving Layer 1's security-providing consensus mechanism there, and assigning Layer 2's computation and execution. It enables the public chain to serve as the Layer 2 settlement layer, enabling the rapid and inexpensive completion of a large number of transactions.

So what is Layer 3? Let's take an overview of Layer 3 by Ethereum founder Vitalik.
“Layer 2 is used for extensions and Layer 3 for customizable extensions. This customization corresponds exactly to the special scenarios that users use and the direction of the application that developers prefer. At the same time, Layer 3 has the ability to extend weak trust, delegating data availability to a trusted third party or entity, further protecting user privacy and security of use.”

To put it briefly, Layer 3 is actually constructed using Layer 1 and several Layers 2. It can provide solutions for higher-level expansion that are directly aimed at C-end consumers. Layer 2 can improve operational efficiency, but it is unable to handle application scenarios that require a great deal of customization. But as a separate layer, Layer 3 offers tailored services that can enhance customers' trading experiences.