LAYER 3S IN CRYPTO: WHAT THEY ARE AND HOW THEY IMPROVE SCALABILITY

Summary from the TLDR Crypto newsletter

Layer 3 protocols are designed to provide advanced scalability and allow developers to create application-specific blockchains. They aim to solve issues of scalability, interoperability, and customization. Notable examples include Orbs, Arbitrum Orbit, and zkSync Hyperchains. Primarily, they work atop existing Layer 2 solutions, inheriting the security of the Layer 1 blockchain while enhancing the overall functionality and flexibility for developers.