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o launching our own blockchain, sovereign chain, or layer 3, the major issue is that validators are not available in big numbers. Because there are fewer validators, security is compromised, and hacking happens. The Shared Security model is special.</p><p id="8e10">The more the parachain gets created, the more the value of the DOT token will increase.</p><figure id="943b"><img src="https://cdn-images-1.readmedium.com/v2/resize:fit:800/1*kSy3S_21Yu2rQrj7_K20mA.png"><figcaption></figcaption></figure><p id="3ee6">Cosmos does not have a Shared Security model, but it will have three types of Shared Security models very soon. In Cosmos, Layer 3 may also be launched.</p><p id="f861">Firstly Appchain came with Cosmos, and after that, Polkadot launched.</p><p id="64b7">Because the Cosmos’ technology is free, everyone is creating their own chain to use it. Binance has used the Cosmos SDK to create its own Binance Chain.</p><p id="3aa6">The value of the ATOM token was not rising due to the free SDK in Cosmos, however, with the introduction of the Shared Security model, the value of the ATOM token will increase.</p><figure id="9ba4"><img src="https://cdn-images-1.readmedium.com/v2/resize:fit:800/1*RtzoArOslu9byD-b8qiugg.png"><figcaption></figcaption></figure><p id="d2de">Avalanche will also develop a layer 3 ecosystem. If you wish to start Subnet ( Custom Blockchain Network ), you must first stake a certain amount of AVAX tokens, following which the proposal must be approved before you can use their tech.</p><h2 id="bcf9">Subnet</h2><p id="1955">As the usage of the Subnet will increase, the price of Avalanch Token will also increase. Avax Token will undoubtedly perform better in the future. Alibaba is preparing to launch the Metaverse project on Avalanche’s subnet, and Tencent has collaborated to make use of Avalanche’s validator’s node efficiency in order to achieve quicker throughput.</p><figure id="c7b2"><img src="https://cdn-images-1.readmedium.com/v2/resize:fit:800/1*rSWvv0nMeUtyBZ2fMc1JDw.png"><figcaption></figcaption></figure><p id="2ea5">If you want to create a Layer 3 chain on Layer 2, we can use Optimism and Arbitrum for that.</p><p id="82c1">Optimism’s SDK is known as Superchain. Superchain can be used to launch Layer 3. They’ve launched a layer 3 rollup over a layer 2 Rollup. In Optimism, several Layer 3 chains are set to be deployed.</p><p id="948c">Similarly, ‘Arbitrum Orbit’ is the SDK of Arbitrum. Arbitrum orbit will also be used for several layer 3 projects.</p><p id="dba4">If you wish to create Layer 3 on Optimism and Arbitrum, their tech is free, but you have to submit the proposal through their DAO. To have the proposal accepted in the DAO, a certain amount of Optimism and Arbitrum tokens will have to be staked.</p><p id="853a">Optimism has partnered with Coinbase and A16Z.</p><figure id="3f90"><img src="https://cdn-images-1.readmedium.com/v2/resize:fit:800/1*jNBsLdzi0131KGIwSR55cQ.png"><figcaption></figcaption></figure><p id="8b36">Polygon’s supernet technology allows you to create a custom blockchain using their SDK. Many projects are now running on their supernets. If its use case expands further in the future, a high-level partnership may be formed. Polygon is doing an excellent job in every aspect.</p><p id="821c">Every project has application-specific chains, which will draw a lot of attention. In the race of Layer 3, whose infrastructure will be used primarily depends on who takes the lead. This race will be won by whoever has the most lead. At the moment, the Avalanche has a higher lead.</p><h2 id="a638">Flooring</h2><p id="6585">Crypto technology is similar to flooring in that DEX will be connected to layer 3, layer 3 will be connected to layer 2, and layer 2 transactions will be settled in layer 1.</p><p id="b54d">Perhaps more new Layer 3 players will emerge in the future, but for the time being, just these six projects are on the horizon. The future of these 6 projects is promising and are performing better many times better than other coins.</p><p id="b08f" type="7">Clap — Share — Comment — Happily ☺</p><h2 id="aec0">Disclaimer</h2><p id="0a5d">This is not Financial Advice. This article is meant only for educational purposes. I am just sharing my thoughts and analysis based on my many years of experience.</p><h2 id="58d2">Thank You for Reading…</h2><div id="650f" class="link-block"> <a href="https://medium.com/@jessicadoosan02/membership"> <div> <div>

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Top 5 Coins Racing Towards Layer 3 Development

Leading | Super Strong Fundamental | Futuristic | Never Disappoint

Created In Canva

All of the Dapps that we use today are hosted on Layer 1. Many Layer 2 projects are already entering the market, but like Layer 1, Layer 2 hosts a large number of Dapps. In Layer 2, many people are using Arbitrum and Optisum’s DEX, Defi, and NFTs marketplace.

In the next two to three years, every Layer 2 project on the market will develop its own Tech SDK, allowing them to build a unique blockchain. Since the SDK allows for customized sovereign actions, Layer 3 will be the name of the final result of the sovereign chain. This type of layer 3 concept will become increasingly popular in the future.

Demand Boost

All Layer 2 projects on which Layer 3 is built will be hyped, and as a result, the value of their tokens will rise in accordance with Layer 3. Layer 2 will benefit more here since it may boost token demand.

Some projects, such as Polygon, Arbitrum, avalanche, Cosmos, and Polkadot, are working on this idea, with the goal of developing a custom sovereign chain layer 3.

Let’s talk about how their token will be used and how the demand will increase.

Perspective

People only make investments in goods whose demand is expected to rise in the future. We will get good returns only when the demand will be formed in the future. This thing will be good for a long-term investment perspective.

Photo by Johannes Plenio on Unsplash

Future of Crypto

Looking ahead to the future of crypto, Japan, Hong Kong, and Europe have all suggested regulatory actions. In short, the crypto ecosystem is set to be controlled. In this crypto regulation environment, regulated assets will be limited, while unregulated assets will multiply. All tokens included in the list of regulated assets will have a fundamental, demand-driven use case that will aid in boosting the token’s volume.

In the past, tokens rose due to hype and community, but in an upcoming bull market, tokens will rise due to fundamentals. So before that, we need to start understanding the actual worth of tokens.

Now, let’s discuss about Layer 3 coins, which have the potential to accomplish many fantastic things in the future.

Polkadot is one such project that may launch a sovereign chain. The sovereign chain in Polkadot is known as a parachain. Parachain is a customized blockchain network that in which separate chains can be created for gaming, Defi, and NFTs. You can create your own blockchain network with the help of parachain.

Flexible

Many Defi, gaming, and NFTs protocols are now being released in projects like Ethereum and Solana, therefore they have some limitations. Ethereum will give support based on the features available in Layer 1; it will do what it can. EVM, consensus, layer, and speed cannot be modified separately since they are not flexible.

Flexibility is available in Layer 3, in which you can make changes according to requirements and improve performance.

DOT

Parachain can be launched in Polkadot and the one who has to launch parachain has to stake the supply of DOT tokens for a specific period. The number of DOTs that must be staked depends on the offering in each auction; in the most recent offering, 150k DOTs were staked.

Shared Security Model

When we stake DOT in Parachain in this way, we receive the security of Polkadot’s Shared Security model, which secures your network using Polkadot’s validators.

When it comes to launching our own blockchain, sovereign chain, or layer 3, the major issue is that validators are not available in big numbers. Because there are fewer validators, security is compromised, and hacking happens. The Shared Security model is special.

The more the parachain gets created, the more the value of the DOT token will increase.

Cosmos does not have a Shared Security model, but it will have three types of Shared Security models very soon. In Cosmos, Layer 3 may also be launched.

Firstly Appchain came with Cosmos, and after that, Polkadot launched.

Because the Cosmos’ technology is free, everyone is creating their own chain to use it. Binance has used the Cosmos SDK to create its own Binance Chain.

The value of the ATOM token was not rising due to the free SDK in Cosmos, however, with the introduction of the Shared Security model, the value of the ATOM token will increase.

Avalanche will also develop a layer 3 ecosystem. If you wish to start Subnet ( Custom Blockchain Network ), you must first stake a certain amount of AVAX tokens, following which the proposal must be approved before you can use their tech.

Subnet

As the usage of the Subnet will increase, the price of Avalanch Token will also increase. Avax Token will undoubtedly perform better in the future. Alibaba is preparing to launch the Metaverse project on Avalanche’s subnet, and Tencent has collaborated to make use of Avalanche’s validator’s node efficiency in order to achieve quicker throughput.

If you want to create a Layer 3 chain on Layer 2, we can use Optimism and Arbitrum for that.

Optimism’s SDK is known as Superchain. Superchain can be used to launch Layer 3. They’ve launched a layer 3 rollup over a layer 2 Rollup. In Optimism, several Layer 3 chains are set to be deployed.

Similarly, ‘Arbitrum Orbit’ is the SDK of Arbitrum. Arbitrum orbit will also be used for several layer 3 projects.

If you wish to create Layer 3 on Optimism and Arbitrum, their tech is free, but you have to submit the proposal through their DAO. To have the proposal accepted in the DAO, a certain amount of Optimism and Arbitrum tokens will have to be staked.

Optimism has partnered with Coinbase and A16Z.

Polygon’s supernet technology allows you to create a custom blockchain using their SDK. Many projects are now running on their supernets. If its use case expands further in the future, a high-level partnership may be formed. Polygon is doing an excellent job in every aspect.

Every project has application-specific chains, which will draw a lot of attention. In the race of Layer 3, whose infrastructure will be used primarily depends on who takes the lead. This race will be won by whoever has the most lead. At the moment, the Avalanche has a higher lead.

Flooring

Crypto technology is similar to flooring in that DEX will be connected to layer 3, layer 3 will be connected to layer 2, and layer 2 transactions will be settled in layer 1.

Perhaps more new Layer 3 players will emerge in the future, but for the time being, just these six projects are on the horizon. The future of these 6 projects is promising and are performing better many times better than other coins.

Clap — Share — Comment — Happily ☺

Disclaimer

This is not Financial Advice. This article is meant only for educational purposes. I am just sharing my thoughts and analysis based on my many years of experience.

Thank You for Reading…

↑ ↓ Brain Boosting …

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