Have you heard of those new crypto projects on Layer 3, making rounds in the market? They’re like the cool kids of the cryptocurrency world, bringing together blockchain technology and smart contracts. Their goal is to make Web 3.0 a reality by allowing people to complete transactions without relying on third parties and giving them more control over their own data. Right now, the dApps we use are usually found on Layer 1.

But guess what? We’re starting to see a bunch of dApps on Layer 2 blockchains popping up too! Take, for example, GMX, the most popular DEX on Arbitrum and Radiant, a DEFI protocol built on Arbitrum.

They’re considered some of the most successful Layer 2 dApps out there. At the time of writing, GMX and Radiant’s TVL is 470.81M and 237M respectively. It’s clear that these Layer 2 projects are carving out their own space in the industry.

Layer 2’s are gaining attention because some of them are basically creating their own special tech, like an SDK (super cool technical thing), that can be used to create another blockchain on top of it. We call them Layer 3 blockchain.

With the help of this amazing technology, these projects can actually create their very own custom blockchains and establish new networks that are completely independent. It’s like they become their own rulers of the crypto world! And let me tell you, this whole sovereign chain concept has the potential to become the next big sensation in the years to come.

Now, here’s an interesting ripple effect that we can expect from the growth of these Layer 3 projects. The Layer 2 projects they are built upon, the foundation layer, will also experience a surge in the value of their native tokens. It’s like a rising tide lifting all boats!

And that’s why in this article, we’re going to delve into the top crypto projects that contribute to Layer 3 blockchain. Not only is it fascinating from an investment perspective, but it will also provide you with valuable insights into the factors driving demand in this exciting space.


Even if you are a beginner in the space, you are sure to have heard of the Polkadot platform. It’s essentially a platform that allows you to move assets and data between different blockchains, but is not just limited to tokens! With Polkadot, you can actually connect and interact with multiple blockchains using something called para chains. These para chains are like custom-made blockchain networks that you can create to fit your specific needs. It’s all about customization. The cool thing about Polkadot is that it gives you this flexible layer where you can maintain your own security and add new protocols based on what you prefer. It’s like having a buffet of functionality, and you get to pick and choose what works best for you. Unlike its competitors, like Ethereum, where everything is separate and isolated, Polkadot’s para chains can actually communicate with each other. It’s all about that Web 3.0 philosophy of collaboration and connection. Oh, and let’s not forget about the platform’s native token called DOT. It’s the fuel that powers everything on Polkadot.

IBC Protocol (Cosmos)

Cosmos with its IBC protocol is a top-notch layer 3 protocol that ensures reliable and secure interconnectivity among different blockchain networks. It’s based on the fundamentals of collaboration, data transfer, and making things work smoothly. Cosmos functions as a decentralized network made up of a bunch of independent blockchains that work together. Each blockchain is powered by a special consensus algorithm called Tendermint consensus. So, basically, Cosmos is like a whole ecosystem of blockchains that can scale and communicate with each other. Here’s how it works: the Tendermint Core acts as the protocol for the first layer, while the Cosmos-SDK takes care of all the fancy functionalities for the second layer. The IBC protocol works like the glue that holds everything together and ensures safe and reliable communication between these different modules and applications. With the IBC protocol, you can do cool stuff like multi-chain smart contracts and cross-chain asset transfers. And here’s the best part: IBC doesn’t limit itself to a specific network structure or consensus algorithm. It can work with all sorts of blockchains or state machines.


Superchain presents a fresh perspective on how data is handled, shifting away from the conventional “Web2” centralized frameworks and embracing the decentralized architecture of “Web3.” With Superchain, data indexes are distributed to users, resulting in improved performance and reduced latency since the processing takes place locally. Instead of simply gathering data together like centralized systems do, Superchain unifies the data into a comprehensive and detailed model. This approach enables data to be fast, adaptable, and decentralized. The main goal of Superchain is to create a data protocol that is completely decentralized and prioritizes users’ needs over the limitations of computers. To achieve this, Superchain has developed its own specialized data storage project and streaming powers. Developers can conveniently access the data indexes through a software development kit (SDK), ensuring high-speed interactions without the hindrance of sluggish presentation layers. At present, Superchain supports popular Ethereum (EVM) based chains and Layer 2 solutions. It has garnered support from influential figures in the Web3 community, such as Blockchain Capital, Maven11, KR1, Tokonomy, Keyrock, and many others. Their involvement demonstrates the trust and confidence placed in Superchain’s innovative approach to decentralized data management.


Magi represents an incredibly speedy OP Stack rollup client crafted using Rust. In the Ethereum context, Magi serves as the consensus client, commonly referred to as a rollup client. Its primary role is to supply fresh blocks to the execution client, propelling the chain forward. Essentially, Magi undertakes the same fundamental tasks as the reference implementation (op-node) and operates alongside an execution node, like op-geth, to synchronize with any OP Stack chain, including Optimism and Base. The ultimate aim of Magi is to emerge as an independently developed, seamless replacement for op-node, thereby enhancing the diversity of clients available for rollup. The team behind Magi has expressed their desire to foster a safer and more vibrant OP Stack ecosystem through the development of this new client in Rust. They hope that this initiative will also attract more contributors to the ecosystem. Currently, in the development phase, Magi has a roadmap outlining several planned features and improvements. Among these are strategies to track the unsafe head (unconfirmed blocks) in order to reduce latency, the implementation of new synchronization mechanisms to enhance the speed of the initial sync, support for alternative data availability layers, and the creation of superior testing frameworks for Magi, op-node, and any future clients that may emerge. By introducing Magi into the OP Stack landscape, the team aspires to bolster the overall performance, reliability, and accessibility of the ecosystem, thereby fostering innovation and collaboration among developers.

Arbitrum Orbit

Arbitrum Orbit is an exciting pathway for introducing new chains within the Arbitrum ecosystem. The great news is that developers who launch L3s on Arbitrum One and Nova automatically receive a complimentary and everlasting license, granting them the freedom to utilize, modify, and tailor Arbitrum’s exceptional technology to suit their L3 chains. Arbitrum offers two fantastic technologies: Rollup and AnyTrust, which provide you with unparalleled flexibility when it comes to building your dream L3. If you’re looking to boost scalability, you can launch L3 Rollup chains, like Arbitrum One, that offer Ethereum-level security. On the other hand, if you have specific application-specific requirements, you can build and personalize an L3 using the Arbitrum Nitro core.

When you launch chains with Arbitrum’s battle-tested technology, you’ll enjoy a range of impressive features. These include fully-functional fraud proofs, advanced compression techniques, and compatibility with the Ethereum Virtual Machine (EVM). For developers who prefer to use the Arbitrum stack to directly launch L2 chains on Ethereum (rather than L3s), there’s an opportunity to submit a proposal to the DAO (Decentralized Autonomous Organization). The DAO holds complete discretion to grant licenses for these cases. This approach puts the community in significant control, not just over the future of Arbitrum One and Nova chains, but also over the underlying technology itself.

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Future of Layer 3

Let’s dive into the fascinating and highly competitive realm of layer 3 networks! It’s a race where the companies behind these networks will play a crucial role in determining market dominance. As we assess the current landscape, it’s evident that networks like Arbitrum, Polkadot, and Polygon are showing promising signs of growth. However, when it comes to partnerships, it’s clear that Avalanche is leading the pack. Understanding these dynamics is vital because layer 3 is set to become the epicenter for decentralized applications in the long run. It’s where innovation and groundbreaking ideas will thrive.

To stay well-informed and ahead of the curve, it’s important to closely monitor the projects we’ve discussed today, along with their underlying networks. Stay tuned for updates on new partnerships and other significant developments that could impact the success of these projects. By carefully analyzing the potential traction that a project may gain, taking into account market factors like partnerships, you can gauge its prospects for success and its position within the layer 3 ecosystems. Remember, the layer 3 space is vibrant and constantly evolving, presenting exciting opportunities and challenges. So, stay engaged, keep a watchful eye on the ever-changing landscape, and witness the transformative power of decentralized technologies in action.