Layer Three Rollup

Definition ∞ A Layer Three Rollup is a scaling solution built on top of a Layer 2 rollup, designed to further enhance transaction throughput and reduce costs for specific applications. These rollups batch transactions and submit proofs to their parent Layer 2, which then settles on the Layer 1 blockchain. This hierarchical structure allows for extreme specialization and efficiency for certain use cases, such as gaming or decentralized social networks. They offer additional abstraction and optimization.
Context ∞ Layer Three Rollups represent an advanced frontier in blockchain scalability, aiming to support hyper-specialized applications with massive transaction volumes. Discussions currently revolve around the complexity of building and maintaining these nested architectures, the security guarantees inherited from their parent layers, and the challenges of interoperability between different rollup levels. Future research will explore the practical applications and economic models that justify the additional layers of abstraction.