These Cryptos Have MASSIVE Potential?! ETH Layer 3 Explained!

Everyone is looking for which chain will Have the next 100 X's it seems that most Of the layer 1 and layer 2 ecosystems Have already become saturated so in Order to uncover those 100x gems you Need to dig deeper dig deeper deeper Deeper this has led to the rise of layer 3es with the all new Deen chain being Just one of many examples as the name Suggests dgen chain is well a chain for Degenerates mostly filled with meme Coins the thing is though layer 3s are Also super efficient making them perfect For things like gaming Defi and much Much more besides as such layer three Chains and the cryptos launching on them Have some serious 100x potential So Today we're going to tell you everything You need to know about layer 3s Including what they are what benefits They bring and where you can find them Before we go on I need to let you know That I am not a financial adviser folks And nothing in this video should be Considered Financial or investment Advice this video is purely for Entertainment and educational purposes And I'll also note that myself and many Other members of the coin Bureau team Hold eth as well as various projects Within its ecosystem as part of our own Personal portfolios don't worry though We promise to remain objective and Unbiased in our

Review now the reason reason why Ethereum has more layers than a 10-year-old's birthday cake is because Of the obvious drawbacks of ethereum Itself if you've ever tried to use Ethereum for well pretty much anything Really then you'll know that there's two Major problems with it it's slow and It's expensive in fact it's the exact Reason why other monolithic chains like Salana have seen so much growth lately We'll come back to that later though Anyways ethereum's popularity means that The network is often highly congested What this means is a higher demand for Block space resulting in users paying More in gas fees to skip the queue so to Speak in order for their transactions to Be verified faster in many ways this Makes ethereum a victim of its own Success case in point ethereum's All-time high was on the 10th of November 2021 that same day the average Gas fee was $56.66 and this is all made worse by the Fact that ethereum can only process Around 30 transactions per second for Perspective salana can process between 2 And 3,000 transactions per second so in Order to overcome this performance Ceiling ethereum is supported by layer Twos these are protocols built on top of The ethereum main net the layer one to Roll transactions up into a bundle and

Then process that bundle as one Transaction before sending the data back To the base layer some notable examples Of layer twos include arbitrum optimism And immutable all of which can handle Much higher transaction speeds at a Fraction of the cost incidentally we Also did a video about the layer 2 Ecosystem and we'll leave a link to it In the description and by the way if You're enjoying this video so far smash That like button to give it a boost And Subscribe to the channel if you haven't Done so already also don't forget to Ping that notification Bell so you don't Miss our next one anyhoo As great as layer tws are at enhancing Ethereum's performance there's always Room for improvement enter layer 3es Which have popped up to take things to The next level but just what the heck Are layer 3es and where did they come From well as you've probably guessed Layer 3s are Advanced protocols built on Top of layer 2os so to use the example From the introduction dgen chain is a Platform built on top of Bas which is Itself a layer two built on ethereum now Layer 3s are built to work in Conjunction with layer 2s to help Decongest the layer one and scale the Ethereum blockchain even further to do This layer 3s optimize various consensus Mechanisms and data structures enabling

Even higher throughput and transaction Processing capabilities than layer 2os Some layer 3s act as an additional layer Of rollup technology taking those Layer Two transaction bundles we mentioned Earlier and processing multiple bundles As one transaction the data from that Transaction goes back to the layer two To then be sent on to the base layer This gives a massive boost to the speed And efficiency of the network this isn't The only positive though in fact it's Arguably one of the least impressive the Real benefits layer 3's can provide Relate to usability and Interoperability that's because layer Three is considered the application Layer this is where more userfriendly Applications can be built to provide Real world use cases in order to allow These applications to run at full Capacity each layer three hosts just one Dap this singular Focus offers layer 3 Developers unparalleled levels of Customization as well as robust security Features for each dap giving them the Opportunity to create secure Applications with the user in mind their Independent nature means that they can Adopt Innovative fee models tailored to The specific needs of that particular Dap this flexibility leads to more Cost-effective transactions making the Network more accessible and affordable

For a greater number of users layer 3s Can also leverage this flexibility to Connect multiple layer 2 networks Together allowing transactions across Different blockchains to be processed Seamlessly something layer 2s can't Currently do this Fosters a more robust And interconnected crypto ecosystem so When tallied together this all points Towards an improved user experience this Is great for people already in the space And we all know how clunky a lot of Crypto applications can be but when a Crypto app is easy to use for those People entering the space for the first Time they're much more likely to stick Around put differently layer 3s could Become a huge driving force towards the Promised land of mass adoption that said This adoption relies heavily on layer 3 Project success with attracting Developers and users to build and use These damps in the first place with the Layer one space becoming ever more Competitive layer 3s will require Strategic Partnerships developer Incentives and a great ux if they want To create thriving ecosystems before That can really happen though these Layer 3s need to be battle tested Remember this is a brand new Niche and With each dap running on its own network So it's absolutely critical that they Have robust security measures and

Protection against potential Vulnerabilities if they can nail all That though layer 3's could be one of The most significant developments in Crypto with the potential to shape the Future of the industry by driving Innovation expanding the possibilities Of blockchain technology and pushing Wider adoption translation layer 3es are Potentially bullish AF so at this point you're hopefully Familiar with what layer 3es are and What they can do but I bet you're Wondering which cryptos actually fall Into this category well let's take a Look shall we now this is a relatively New space and the list of layer 3 Projects is still expanding as such this List is by no means exhaustive and There's a good chance that more will Have popped up by the time you watch This video it's also important to note That many of these projects don't have Their own native tokens at least not yet Anyway this is a good thing for two Reasons first it means their primary Function is to provide an actual use Case and second it means that playing Around on these chains could mean you're Likely to be eligible for airdrops if And or when they do launch their own Tokens so bearing that in mind a good Way to start is by checking L2 beat We'll leave a link in the description by

The way at the time of shooting there Are 11 layer 3 projects listed there but We won't go into all of them for the Sake of time it's also worth noting that L2 beats list doesn't seem to capture Everything for instance there's an L3 Called orbs that was launched way back In 2019 but for some reason it isn't Included in this list anyways we'll Start with some projects that do Actually have their own token these are Orbs the aforementioned dgen chain and z Now orbs is a layer three that's Actually sandwiched between the layer One and the layer two serving as a Decentralized backend to enhance evm and Nonm compatible smart contracts to Support things like web 3 Defi nfts and Gamei next is dgen chain which as we Mentioned earlier is built on top of BAS Not surprisingly its native dgen token Was originally launched as a meme coin But also aims to reward engagement on Its channel on farcaster a sort of Decentralized version of Twitter since Then dgen has garnered the attention of Developers content creators and Enthusiasts alike oh and if you're Looking to buy sell or trade dgen then It's listed on bybit and if you sign up Using our link below you won't only get 0% maker fees for 30 days but you'll Also have a a chance of winning a 60k Exclusive sign up bonus this deal is

Only available for the users of this Channel and for a limited time only link Below now another layer three is z a Gaming Focus project that's built on Arbitrum we won't go into this one too Much but if you want a full breakdown of What Z is all about then we covered this One exclusively for our coin Bureau club Members as for the remaining layer 3es We'll be discussing these don't have the Their own tokens just yet but I'll Remind you that it might be worth Messing around with these chains if Airdrop farming is your thing anyway First up is the stack chain a social Media focused layer 3 built using Optimism's Tech and settling on base Stack chain allows Brands to create Their own loyalty programs to drive Community engagement Stack's aim is to Address the shortfall of airdrops which They say lack good tools for efficiently Allocating Awards stack chain was Founded by CEO gry and boy in January 2023 and is backed by the likes of Coinbase Ventures conduit a capital and Archetype next we have syndicates frame Chain this one leverages optimism and Celestia Tech on base with a focus on Providing devs with a scaling solution To bring future layer 3 projects to a Mainstream level syndicate's frame chain Is an application programming interface Or API that helps developers create

Their own layer 3s as it so happens Syndicate's API was also used to launch The dgen chain Syndicate was created in 2020 by co-founders Will Papa and Ian Lee it has a plethora of notable Partnerships and investors including Andreon Horowitz coinbase Circle polygon And protocol labs to name just a few Then there's ZK link Nova an aggregated Rollup that actually leverages multiple Host chains the protocol aims to unify Ethereum's layer tws to achieve Limitless liquidity and has a token That's yet to launch ZK link was founded In 2021 by Vince Yang Partnerships Include coinbase Ventures polygon salana Crypto.com and Arrington Capital among Many others now as we mentioned earlier There will be more layer 3s outside of What we've just listed but it'll be up To you to Dy and find the projects that You think think will have the most Potential so it's clear that layer 3es Stand to bring new benefits to a Plethora of use cases perhaps the most Obvious one is scalability whereas layer Twos can scale up a layer one like Ethereum by processing transactions Offchain they do have their limits in Simple terms layer 2 transactions can Only be compressed once so stacking Multiple layers of the same rollup Technology on top of each other won't Work ler 3es on the other hand bring

Unprecedented levels of scaling not Previously available pretty much all of The projects that we've mentioned aim to Support scalability in one way or Another with ZK link Nova perhaps being The most notable example as this is its Primary focus this scaling subsequently Brings benefits to other use cases such As gamey this is because a greater level Of scalability means that gaming Networks can run much smoother providing A much better experience for gamers and Developers alike with many blockchain Gaming projects centering around in-game Asset ownership in the form of nfts the Boost to their accessibility means that Their ecosystems can Thrive as more People find the gamey space to be more Adoptable than ever gaming layer 3es Include proof of play Apex and zy which I'll remind you we covered for our coin Bureau club members defi protocols can Also benefit as the the introduction of More customizable spark contracts means That platforms can now offer even more Financial products the flexibility they Offer means that investors now have even More options to generate yield than ever Before Derry is a notable example here With its focus on a more interoperable Defi ecosystem not only that but layer 3s could also benefit decentralized Social media platforms too this is Because in their current form one of the

Biggest hurdles that so platforms face Is their inability to handle large Amounts of traffic and onchain data with The scalability now on offer social Finance elements such as nfts and reward Tokens are a lot more accessible Allowing creators to use these Monetization models to help build and Engage Community layer 3es here include Stack The Syndicate frame chain and even The dgen chain as you can imagine there Will only be more uses for layer 3 Protocols as time goes on but it's clear That they stand to really raise the bar For what ethereum's ecosystem can Achieve and could be what finally pushes Ethereum into mainstream adoption there Is however one big issue that we need to Address whichever way you look at it the Fact that we now have two layers on top Of ethereum makes things complicated and In a lot of ways confusing I mean if we Really expect the broader adoption of Cryptocurrency by new users can we Honestly say that ethereum offers the Best solution to be blunt they're Probably going to turn to other Monolithic chains that can handle these Things on their own without the Additional layers of complexity the Obvious standout here is salana ethereum Sluggishness is due to the fact that It's much more decentralized than rival Chains like salana but the question will

Be if newer users will really care Enough about this in our opinion they Should because without decentralization What your left with is another version Of the already existing Financial system That's actually worse than what we Already have the harsh reality is though Most people just want an easy and cheap Way to interact with the world of crypto And for things like transaction fees Speeds and even token Bridging the likes Of salana will naturally be the more Appealing option and by the way you can Learn more about how ethereum and salana Stack up against each other by watching Our video comparison link below and it's Not just salana either other layer one Blockchains such as Nia seu and many Others besides can likewise process Transactions faster than ethereum and With quicker finality times the flip Side to this however is that ethereum Makes up a massive chunk of the crypto Ecosystem most stable coins are based on Ethereum and most of the top 100 Projects are either erc20 tokens or are Projects based on ethereum's code So when the potential of this already Massive ecosystem is supercharged by the New possibilities enabled by layer 3s The use case for alternative layer ones Begins to lose some traction after all Ethereum may have its fair share of Problems but it's still the second

Largest crypto out there put simply Ethereum is already tried and tested by Most of the crypto community and an Increased level of accessibility will Likely only strengthen its position But this brings us to one important Question do layer 3s offer real Potential or do they only exist to suck Up value from ethereum well this is a Debate that was recently sparked on Twitter and it was fueled by polygon CEO Mark Boon who tweeted that quote l3s Exist only to take value away from Ethereum and onto the l2s on which the L3s are built this was then countered by Peter hymon the senior partnership Manager at offchain Labs who responded By saying quote there's a bunch of Benefits for l3s they don't take value Away from ethereum arbitrum Foundation Researcher Patrick mccy also fired back At Bon by saying that quote l3s seem Like a no-brainer however helus lab's CEO Mt mumtaz shared in Boon skepticism Stating that quote l3s are basically Centralized servers sitting on Centralized service l2s in other words We just recreated web 2 but with higher Fees more scams and a worse ux so a few Varying opinions from some high-profile Crypto natives but what about the Highest profile crypto native of them All vitalic himself well back in late 2022 the vog said that layer 3s will

Serve a different purpose to scaling Solutions by providing customized Functionality whilst also pointing out That layer 3s will only really make Sense if they provide different Functions to layer 2os then on the 2nd Of April this year vitalik commented That quote layer 3es don't magically Improve throughput even more though they Can reduce some fixed costs of batch Publishing and deposits stroke Withdrawals he also added that quote There are other potentially lighter ways To get the same cost savings that you Get from l3s Now from where we're sitting layer 3s Are a bit of a double-edged sword on the One hand they stand to bring ethereum Into a new era of accessibility and Adoption while on the other hand they Could also have a negative impact on Eth's price that's simply because Reduced gas fees naturally means less Demand for eth that said though if Ethereum is more broadly adopted the Price shouldn't be too badly affected Because demand for e will remain high Possibly even higher than it is now Whether layer 3es can prove the Skeptics Wrong remains to be seen but it does Seem like they're already showing real Promise so with that in mind just how Much potential can layer 3s really Provide well this brings us to the

Challenges that layer 3s have to face The first challenge is centralization in Case you weren't already aware most Layer 2 blockchains use a single Sequencer node to organize transactions Usually operated by the core development Team behind the project this arguably Makes them very centralized logically Then this makes layer 3s extremely Centralized by extension as they do the Same thing but on top of the layer two The Second Challenge is competition in Case it wasn't obvious layer 3s are Competing with other smart contract Blockchains for the same end goals Cheaper fee and faster transactions not Only that but they're also competing With the layer 2 space these are only Getting faster and cheaper by the day And this is especially the case after The recent implementation of the denune Upgrade you can find more about that in The description and there's the Competition coming from other layer 3s At the moment there aren't that many About But as time goes on and more layer 3es begin to appear the space will only Become more competitive this ties into The third challenge which is the risk That liquidity in the ethereum ecosystem Could become more fragmented to be clear This is something that's already a Concern at the layer 2 level as more Projects aim to become the de facto

Layer for ethereum users to complete Basic transactions this risk only Increases once you introduce an entirely New layer of additional Blockchains this is what Mark Boon Pointed out on Twitter that fueled the Debate we spoke about earlier and he may Well have a valid point to be fair this Is something that ZK link aims to Address in the hope that by collating Ethereum's scattered liquidity onto its Blockchain ZK link can increase the Capital efficiency within the ethereum Ecosystem time will tell just how Successful that plan will be anyway the Fourth challenge relates to the second And that's the already existing choices For similar use cases specifically from The cosmos ecosystem this this is Because Cosmos has been at the Forefront Of application specific blockchains for Years whilst Cosmos is fairly Centralized in nature with just 180 Validators this hasn't stopped it from Building one of the largest ecosystems In all of crypto cosmos's Founders have Always held the belief that as crypto Adoption continues apps will need their Own dedicated blockchains if they want To keep up with demand and remain usable It looks like the layer 3 space only Proved them right so as much as layer 3s Are bringing a lot of excitement to the Ethereum ecosystem they certainly have

Their fair share of hurdles to overcome Even so there's still a hugely exciting Development particularly of course for Ethereum let's just see exactly how far They can bring the ecosystem forward in The Future okay that's just about a wrap for Today's video folks but we want to hear From you now are you bullish on layer 3s Or are just dgen plays with no real Potential let us know your thoughts in The comments below if you're looking to Trade cryptos on an exchange then be Sure to check out the coin Bureau deals Page where we have some of the best Deals in all of crypto you'll find sign Up bonuses of up to $60,000 and trading Fee discounts of up to 60% we also have Exclusive deals on Hardware wallets for You to keep it all stored safely and if You want to find some of the best crypto Swag out there a coin Bureau merch store Has it all the link to that is in the Description too okay thank you all so Much for watching and we'll see you in The next one my name is guy and this is [Music] Goodbye