PAW Chain’s New Layer 3 Blockchain: Moving Beyond Layer 2

The blockchain industry has seen rapid advancements, with developers constantly pushing for better scalability, security, and efficiency. A significant step forward is the introduction of Layer 3 (L3) blockchains, designed to address some limitations of Layer 2 (L2) solutions. PAW Chain is leading this evolution with its new L3 blockchain.

Understanding Blockchain Layers

• Layer 1 (L1): The base layer or main blockchain, like Bitcoin or Ethereum, handles core functions such as consensus, security, and data storage.
  
• Layer 2 (L2): Built on top of L1 to improve scalability and transaction speeds. L2 protocols, such as the Lightning Network for Bitcoin or Optimistic Rollups for Ethereum, operate off-chain and interact with L1 only when necessary.
  
• Layer 3 (L3): L3 adds on top of L2 and L1, offering further abstraction and specialization. L3 is designed to optimize specific functionalities like privacy, interoperability, and specialized use cases that L2 solutions may not adequately address.

Layer 2’s Role and Limitations

L2 blockchains were developed to tackle the issues of L1 blockchains. As networks like Ethereum grew, they became congested, leading to slower transactions and higher fees. L2s reduce this load by processing transactions off-chain.

• Scalability: By moving transactions off-chain, L2 solutions can handle more transactions per second (TPS), improving scalability.
  
• Lower Costs: Since L2 solutions reduce the number of transactions that need to be processed on-chain, they lower the transaction fees.
  
• Faster Transactions: L2 solutions enable near-instant transactions as they bypass the slower L1 consensus mechanisms.

However, Layer 2 solutions still depend on Layer 1 for final settlement and may not address issues like interoperability or specialized functionalities.

PAW Chain Layer 3: The Next Step

Layer 3 blockchains, like PAW Chain’s, go beyond L2s. Offering more efficient task handling, better interoperability between blockchains, and enhanced privacy features.

Key Differences Between L2 and L3:

• Specialization: L3 blockchains are tailored for specific industries, offering customized features. For example, an L3 for gaming might optimize for fast, microtransactions.
  
• Interoperability: L3 blockchains can connect multiple L1 and L2 networks, facilitating smooth communication and transfers across different blockchains.
  
• Privacy: L3 blockchains can implement advanced privacy features, crucial for industries where data confidentiality is essential.

Advantages of PAW Chain’s Layer 3 Blockchain

• Enhanced Scalability: 

While Layer 3 blockchains help by handling transactions off the main chain, they still need to rely on Layer 1 for finalizing those transactions. PAW Chain’s Layer 3 takes this further by focusing on specific tasks, reducing the need to go back to the primary chain as much. This makes transactions cheaper and faster, which is perfect for apps that need to process a lot of data quickly. In fact, PAW recently recorded an incredibly fast block time of just 0.004 milliseconds, making it one of the quickest networks out there.

• Greater Interoperability:

One problem with blockchains is that they don’t easily communicate with each other. PAW Chain’s Layer 3 solves this by acting as a bridge between different networks, making it easy to move assets and data across chains. Developers can also easily expand their projects to multiple chains with PAW, using just one liquidity pool that works across networks like BASE, Polygon, and BNB. This setup cuts down on the costs and time usually required to operate on multiple chains.

• Improved Privacy:

Privacy is always a concern in blockchain, especially for businesses and individuals who need to keep their transactions confidential. PAW Chain’s L3 uses advanced encryption to enhance privacy, letting users make transactions without exposing sensitive information.

• Tailored Solutions: 

Most Layer 3 solutions are made to be flexible across various uses. But, with Layer 3 blockchains like PAW Chain, you can tailor the system for specific industries or needs. For example, an L3 blockchain focused on gaming could be optimized for fast, small transactions and integrate smoothly with existing gaming platforms.

Preventing the Multichain Hack: How PAW Chain’s Layer 3 Could Have Made a Difference:

After highlighting PAW Chain’s Layer 3 features, it’s essential to consider how this technology could have impacted real-world events. A prime example is the Multichain hack in July 2024, where over $120 million in assets were stolen due to vulnerabilities in the bridge’s smart contracts.

PAW’s L3 ledger could have played a crucial role in preventing such an incident with its advanced verification processes, multi-signature protocols, and automated audit trails. As one of CertiK’s top 10 audited projects, and unlike typical L1 and L2 solutions, PAW’s L3 introduces an extra level of security by isolating high-risk transactions and applying advanced cryptographic techniques to ensure each tx is thoroughly verified before execution.

Preventing the Uniswap v3 MEV Bot exploit: How PAW Chain’s Layer 3 Could Have Made a Difference:

In June 2024, Uniswap v3 fell victim to a Maximal Extractable Value (MEV) bot exploit. The bot took advantage of the mempool to front-run transactions, profiting from price differences and causing significant losses. The bot monitored pending transactions and strategically placed its own, exploiting Uniswap’s reliance on gas fees to determine transaction order.

How PAW Chain’s L3 could have prevented this:

Private Mempool

PAW Chain’s Layer 3 architecture conceals transaction details, making them visible only to the sender until completion. MEV bots are unable to access or manipulate pending transactions, which stops front-running attacks and keeps transactions secure.

Interchain Operability

PAW Chain enables smart contracts to operate across multiple blockchains. By reducing reliance on multiple liquidity pools, the system complicates efforts by bots to exploit transactions on individual networks, enhancing overall security.

Triple Accounting Ledger and Cross-Stitching Methodology

PAW Chain records each transaction across three separate ledgers to ensure data accuracy. The cross-stitching methodology interlinks blocks, making unauthorized manipulation extremely difficult. These techniques ensure the integrity and security of the blockchain.

In summary

PAW’s new Layer 3 blockchain is a significant advancement. It offers enhanced scalability, interoperability, privacy, and specialization. As the industry grows, PAW will play a key role in addressing the limitations of earlier layers and unlocking new possibilities.

Visit the PAW Chain website, and their social media.

Disclaimer: This article is provided by the Client. The Client is solely responsible for this page’s content, quality, accuracy, products, advertising, or other materials. Readers should conduct their own research before taking any actions related to the material available on this page. The Crypto Basic is not responsible for the accuracy of info and any damage or loss caused or alleged to be caused by the use of or reliance on any content, goods, or services mentioned in this article.

Please note that The Crypto Basic does not endorse or support any content or product on this page. We strongly advise readers to conduct their own research before acting on any information presented here and assume full responsibility for their decisions. This article should not be considered investment advice.