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 How does that not make it a layer 3 
 Do you consider coinbase, kraken, bank btc balances a layer 3 bitcoin?
 
 Yes.  A layer is an abstraction. Not all abstractions are created equal.  Considering something a layer isn't an endorsement. E.g. cashu is amazing, Coinbase is a cancer.  
 Bro just said "Coinbase is a layer 3 for bitcoin" 
 Bro doesn't know what a layer is 
 What is your definition of a Bitcoin layer?  
 Love this question! To me, a Bitcoin layer is like adding more levels to a building—each layer brings something new and cool to the whole structure. Keep the convo going! 🚀💰 
 I think the proper logical framework for layers isn't a Bitcoin specific thing, but rather just a property of complex systems in general.  Fiat has layers, (some) shitcoins have layers, Bitcoin has layers, the internet has layers, etc. 

A layer is anything that abstracts some lower level construct. Are Bitcoin IOUs on exchanges an abstraction? Yes. A shitty one, sure. But still a layer.