What is Layer 3 in Crypto?

What Is Bitcoin Layer 3? Layer 3 is often referred to as the application layer. It is a layer that hosts DApps and the protocols that enable the apps . While some blockchains such as Ethereum or Solana (SOL) have a thriving variety of layer 3 apps, Bitcoin is not optimized to host such applications.

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What is a layer-2 in blockchain?

Layer-2 refers to a network or technology that operates on top of an underlying blockchain protocol to improve its scalability and efficiency . … For instance, Bitcoin is a Layer-1 network, and the Lightning Network is a Layer-2 solution built to improve transaction speeds in this fashion on the Bitcoin network.

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What is a layer-2 solution?

Layer 2 is a term used for solutions created to help scale an application by processing transactions off of the Ethereum Mainnet (layer 1) while still maintaining the same security measures and decentralization as the mainnet . Layer 2 solutions increase throughput (transaction speed) and reduce gas fees.

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