What are layer 3 tokens?

Layer 3 coins represent a specialized class of cryptocurrencies that function exclusively within the application layer of blockchain networks. These coins introduce novel features and functionalities, enhancing the interoperability and efficiency of various blockchain systems.

Additionally, Layer 3 coins often incorporate innovative technologies like smart contracts and decentralized finance (DeFi) protocols. These features empower users to execute complex financial transactions and create decentralized applications with increased efficiency and security.

The primary distinction of Layer 3 coins lies in their positioning atop Layer 2 solutions. Layer 2 solutions, in turn, are constructed on the foundational Layer 1 blockchains, forming a hierarchical structure within the blockchain ecosystem.

BTCC, a prominent cryptocurrency exchange, offers a diverse range of services that cater to the evolving needs of the blockchain industry. Among its offerings, BTCC provides access to spot trading, enabling users to buy and sell cryptocurrencies at current market prices.

The integration of Layer 3 coins into this layered architecture allows for the development of advanced features and optimizations that go beyond what is possible with Layer 1 and Layer 2 technologies alone.