Layer-3 technologies represent the cutting edge in Ethereum’s scaling strategies, providing additional layers built on top of the already existing Layer-2 solutions. While they promise to lower specific fixed costs linked to batch settlements and deposits or withdrawals, their true value in enhancing Ethereum’s transaction throughput remains a topic of discussion. This nuanced view is essential to understand their potential in refining the Ethereum network’s overall efficiency over time. The incorporation of another layer to the blockchain also introduces a new level of complexity, which warrants a careful evaluation of its implications.
Guy Turner, a well-known cryptocurrency expert and the host of the Coin Bureau channel on YouTube, has recently shared his optimistic perspective on the future of Layer-3 solutions with his 2.46 million subscribers. According to Turner, the native tokens associated with these advanced scaling solutions possess significant growth potential. He emphasizes the efficiency of Layer-3 networks, which he believes are especially suited for applications in gaming, decentralized finance (DeFi), and other areas, potentially increasing their value by up to a hundredfold.
In particular, Turner highlighted several promising Layer-3 projects. Among these is Degen Base (DEGEN), which operates on the Base layer-2 project, an Ethereum scaling initiative supported by the prominent Coinbase crypto exchange. Originally launched as a meme coin, the Degen token aims to incentivize active engagement on its platform, Farcaster, which resembles a decentralized version of Twitter. Since its inception, it has attracted a diverse group of developers, content creators, and crypto enthusiasts.
Another noteworthy project is Xai, which focuses on the gaming sector and is built on Arbitrum, another Layer-2 solution. Projects like Xai illustrate the targeted approach of Layer-3 technologies in addressing specific needs within the blockchain ecosystem, showcasing their potential to revolutionize how transactions and applications are managed in a scaled blockchain environment.
