The interesting thing about disruptive technology is you don’t know that it’s disruptive until it has caused a major shift in the way we use, automate, bank, and conduct our daily business as consumers. Now and then a team comes up with a product that is so groundbreaking that it just seems to effortlessly solve an obvious problem we may not even know we had.
Orbs is one just team. Responsible for the first-ever hybrid open-source architecture that was aimed at enterprise, Orbs has been one to watch in the blockchain industry for a while. They have, over time, allocated their talents towards the direction of DeFi (decentralized finance).
DeFi is one of the leading and most beneficial propositions of the blockchain to date. It gives users the ability to invest and manage their money using the blockchain. It opens up new investment opportunities through staking, lending, AMMs, and vaults that are unmatched in the centralized financial system, with unparalleled returns.
Announcing Layer 3 in Action
DeFi currently works on both Layer 1 and Layer 2 chains. These include Ethereum, BSC, Avalanche, and Solana for Layer 1, all of whom Orbs has integrated with, as well as smaller Layer 2 chains. The Layer 1 chains provide the security elements, and the Layer 2 chains bring the scalability and speed to transactions and activity that users expect. Now Orbs is introducing the idea of Layer 3 chains to the industry, a game-changing idea, which will work in collaboration with the Layer 1 and Layer 2 chains to enhance the functionality of the apps on those chains.
For instance, rather than investing in hedge funds or ETFs, a user can invest their funds in DeFi automated investing apps, whereby they place their funds in vaults. The smart contracts on these Layer 2 apps are programmed to deploy when they find investment opportunities. However, the range of trades these apps can make is limited to the basic actions that smart contracts can enact. However, using Orbs new Layer 3 chains, the app’s range of actions can be extended by programming much more sophisticated strategies, thus expanding the investment opportunities for yield generation and risk management.
The idea of a Layer 3 chain is a fascinating proposition in this industry and it’s something that has already been used for the first-ever app utilizing this structure. The Open DeFi Notification Protocol was one of many teams to apply through the DeFi.org Accelerator, which was launched in cooperation with Binance and Moonstake, to find and bootstrap outstanding DeFi projects and protocols. The winning protocol, the Open DeFi notification Protocol is an initiative that prompts decentralized and mobile notifications for on-chain events for users. For instance, if their holdings have reached a peak level, or if the price of an asset has hit a target. Orbs has opened up a call for new proposals like this that draw upon the Layer 3 infrastructure to bring deeper value to dApps.
The coming months will be an exciting time for those involved in DeFi, and this might be the first time you hear of Layer3, but probably not the last. Watch this space.