@arbitrumorbit
2. **Layer 2 and Layer 3 Flexibility**:
- Orbit chains can function as L2 chains, settling directly to Ethereum, or as L3 chains, settling to any Arbitrum L2 (like Arbitrum One or Arbitrum Nova). This allows for compounding scalability, where L3s can offer significantly higher throughput than L2s or Ethereum’s Layer 1 (L1).