Layer Three

Definition ∞ Layer three refers to a conceptual layer built atop existing blockchain networks, primarily focused on cross-chain interoperability and application-specific functionalities. It extends beyond layer-two scaling solutions by enabling communication and value transfer between different blockchains. This layer aims to create a more unified and interconnected ecosystem for decentralized applications. Its purpose is to facilitate broader network communication.
Context ∞ Discussions about layer three often appear in news related to the future of blockchain interoperability and the vision of a “web of blockchains.” While layer two addresses scaling within a single chain, layer three seeks to resolve the challenge of seamless interaction across multiple chains. Development in this area is still nascent, but it represents a significant direction for expanding the utility and reach of digital assets.