Degen chain, a new layer-3 blockchain, has attracted significant attention and transactional volume since its introduction on Thursday. Its native Degen token has zoomed 500% since its release. The hot ball of money chasing meme coins from Solana to Base networks has found its way to the Degen chain, a layer-3 blockchain built on top of Base that began operations last Thursday.
What is a Layer 3?
Degen chain is a layer 3 network built specifically for the Degen token. A relatively new development, a layer-3 blockchain is a customizable and application-specific blockchain built on top of layer-2 protocols. Layer 2s are networks built on a layer-1 blockchain such as Ethereum or Solana that can settle transactions faster and more cheaply than the underlying system.
The general idea behind a layer-3 network is to have a blockchain that can quickly and verifiably complete a very specific set of tasks. These tasks can range from payments to gaming transactions, and a layer-3 network will handle only those specific types of transactions.
The Degen token will be used as the native gas, or fee payment, token of the chain. Its developers say the chain enables new experiments with tipping, community rewards, payments, gaming and more.
What is Degen Chain?
As reported by Blockworks, Degen chain is the brainchild of Jacek Trociński. According to Trociński, the Degen space on Farcaster was not an extremely popular channel when it first launched and was filled with many builder personas. This began to change in December after someone created a points token.
Trociński began working on a token with similar tokenomics to Blur’s token (BLUR) and Uniswap’s token (UNI), eventually launching it on Jan. 8. The idea behind the token would be that users could earn points if they were active in the channel. Points were awarded to users who received likes and comments on their posts or if users held certain NFTs.
One point always equated to one Degen token, and users were rewarded through an airdrop. With a growing community interest, Trociński noted that more developers began building applications using Degen as its native token.
Degen chain itself launched as a layer-3 blockchain to enable community members of Degen to enable customization. Trociński explained that the chain itself is not designed to be able to do anything “technologically different” but act as an “application layer chain.”
Trociński remarks that if the Degen chain becomes a meme coin chain that enables applications to build games and design fun applications, then it will become extremely valuable. Although Trociński likes the idea of being part of Optimism’s superchain vision, he noted that the OP stack itself did not offer native gas tokens. For this reason, the Degen chain itself is built as an Arbitrum Orbit chain, which settles on Base and uses AnyTrust for data availability.
Conclusion
Degen chain, a new layer-3 blockchain, has swiftly gained traction since its recent launch. Its native token, Degen, has surged significantly, reflecting the growing trend of capital inflow into meme coins. Developed by Jacek Trociński, Degen chain offers a customizable platform tailored for specific tasks like payments and gaming transactions. Positioned as an application-layer chain, its potential lies in fostering diverse experiences within the decentralized ecosystem. As it continues to attract developers, Degen chain holds promise for further innovation in the blockchain space.
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