Disclosures and footnotes: Coinbase Ventures portfolio company backed projects are mentioned in the article including – Optimism, Arbitrum, Celestia, Eigenlayer, Stack, ThirdWeb, Syndicate, Conduit, Alchemy, Socket, Everclear, Reservoir, Starkware, Matter Labs.
L3s (or “Layer 3s”) are an emerging phenomenon among onchain developer deployments especially in the EVM L2 landscape. This document explains the basics of L3s, the value propositions, and implications for the broader ecosystem.
If L2s are the onchain hubs, L3s can be thought of as “onchain servers” that have isolated state environments & fee markets but settle to an underlying L2 & tap into their onramp / distribution mechanisms. This provides apps their own customizable blockspace that they control, while still leveraging the existing liquidity & user bases of L2s.
L3s are rollups and therefore share many similarities to how people will understand L2s.
L3s will become another preferred direction for onchain builders potentially resulting in a handful of L2 “hubs” with millions of L3 “servers”
L3s may be the potential “AWS” moment from a cost perspective
L3s developers will drive popularity of frameworks beyond Solidity / Vyper resulting in multi-VM environments
L3s value flows will rely on the application layer
L3s will require smoother interoperability and chain abstraction to succeed
In conclusion, the L2 ecosystem should expect to see the growth of L3 builders that will want to create isolated onchain application experiences while tapping into underlying L2 hubs.
Within the L3 landscape, Coinbase Ventures is investing in new use-cases that emerge. If you’re building in these areas, we would love to hear from you –@yiryan"> Ryan Yi’s DMs are open!
This material is for informational purposes only, and is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations or (iii) an official statement of Coinbase. No representation or warranty is made, expressed or implied with respect to the accuracy of the information contained herein. Coinbase may have financial interests in, or relationships with, some of the entities and/or publications discussed or referenced in the materials. Coinbase does not endorse or approve links or third-party websites that may be provided in the materials.
This article is reproduced from [Coinbase Ventures], the copyright belongs to the original author [Ryan Yi and Michael Atassi.], if you have any objections to the reprint, please contact the Gate Learn team, and the team will handle it as soon as possible according to relevant procedures.
Disclaimer: The views and opinions expressed in this article represent only the author’s personal views and do not constitute any investment advice.
Other language versions of the article are translated by the Gate Learn team and are not mentioned in Gate.io, the translated article may not be reproduced, distributed or plagiarized.
Disclosures and footnotes: Coinbase Ventures portfolio company backed projects are mentioned in the article including – Optimism, Arbitrum, Celestia, Eigenlayer, Stack, ThirdWeb, Syndicate, Conduit, Alchemy, Socket, Everclear, Reservoir, Starkware, Matter Labs.
L3s (or “Layer 3s”) are an emerging phenomenon among onchain developer deployments especially in the EVM L2 landscape. This document explains the basics of L3s, the value propositions, and implications for the broader ecosystem.
If L2s are the onchain hubs, L3s can be thought of as “onchain servers” that have isolated state environments & fee markets but settle to an underlying L2 & tap into their onramp / distribution mechanisms. This provides apps their own customizable blockspace that they control, while still leveraging the existing liquidity & user bases of L2s.
L3s are rollups and therefore share many similarities to how people will understand L2s.
L3s will become another preferred direction for onchain builders potentially resulting in a handful of L2 “hubs” with millions of L3 “servers”
L3s may be the potential “AWS” moment from a cost perspective
L3s developers will drive popularity of frameworks beyond Solidity / Vyper resulting in multi-VM environments
L3s value flows will rely on the application layer
L3s will require smoother interoperability and chain abstraction to succeed
In conclusion, the L2 ecosystem should expect to see the growth of L3 builders that will want to create isolated onchain application experiences while tapping into underlying L2 hubs.
Within the L3 landscape, Coinbase Ventures is investing in new use-cases that emerge. If you’re building in these areas, we would love to hear from you –@yiryan"> Ryan Yi’s DMs are open!
This material is for informational purposes only, and is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations or (iii) an official statement of Coinbase. No representation or warranty is made, expressed or implied with respect to the accuracy of the information contained herein. Coinbase may have financial interests in, or relationships with, some of the entities and/or publications discussed or referenced in the materials. Coinbase does not endorse or approve links or third-party websites that may be provided in the materials.
This article is reproduced from [Coinbase Ventures], the copyright belongs to the original author [Ryan Yi and Michael Atassi.], if you have any objections to the reprint, please contact the Gate Learn team, and the team will handle it as soon as possible according to relevant procedures.
Disclaimer: The views and opinions expressed in this article represent only the author’s personal views and do not constitute any investment advice.
Other language versions of the article are translated by the Gate Learn team and are not mentioned in Gate.io, the translated article may not be reproduced, distributed or plagiarized.