> For the complete documentation index, see [llms.txt](https://docs.standard.im/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.standard.im/standard-l3/what-is-standard-l3/how-standard-l3-works.md). # How Standard L3 works For example, Bob wants to buy 32 million USD worth of Bitcoin due to tariff wars. While he was able to buy 10 million USD worth of Bitcoin on centralized exchanges with his institution, he was not able to trade other 22 million USD into Bitcoin. If he still tries to use AMM, the slippage is too high that he would end up trading at 90% slippage. Meanwhile, Alice, a mining farm owner in Denver needs to sell Bitcoin to sustain her mining farm. However, if she deposits on centralized exchanges, she has people tracking her wallet's balances and transfer, harming the market if she tries to make exchange worth more than 1 million USD on centralized exchange. \ \ This is where Standard comes in. Standard L3s are interoperable between Bitcoin and Base with partners like [Wormhole](https://wormhole.com/) or [Layerzero](https://layerzero.network/). One Standard L3 is a bitcoin L3 while Bitcoin ZK L2(e.g. [Citrea](https://citrea.xyz/)) which focuses on securing Bitcoin transaction data and privacy from the Bitcoin chain. The other Standard L3 is deployed connected to Base, giving fast, realtime TPS. From there, Bob can send USDC from Base Standard L3 to Bitcoin Standard L3 for buying bitcoin in seconds on bridges. Alice can bridge her bitcoin to Standard L3 securely with help of Bitcoin ZK L2 while keeping her transactions private. Then they can trade on Standard L3 on orderbook without slippage. Bob and Alice did not know each other, but made 22 million USD transaction on chain. No KYC between each other, No offline meetings to confirm identity. It all happened seamlessly with Standard being application layer for Bitcoin and USDC. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.standard.im/standard-l3/what-is-standard-l3/how-standard-l3-works.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.