Kraken Considers Launching Its Own Layer-2 Network

The world of cryptocurrencies is abuzz with the news that Kraken, a prominent United States-based cryptocurrency exchange, is contemplating the launch of its layer-2 network. This intriguing development was reported by CoinDesk, citing sources familiar with the matter. While Kraken has not officially confirmed or denied these reports, it has taken significant steps that suggest a move towards embracing layer-2 technology.

Kraken’s Potential Layer-2 Network

The discussions surrounding Kraken’s potential entry into the layer-2 network space are ongoing, and other teams or collaborators may be involved in the project. In response to inquiries about these rumours, a Kraken spokesperson offered the following statement: “We’re always looking to identify and solve for new industry challenges and opportunities. We don’t have anything further to share at this time.”

A Senior Cryptography Engineer Job Posting

One strong indicator of Kraken’s interest in layer-2 technology is the recent addition of a job posting for a “Senior Cryptography Engineer.” The job description reveals Kraken’s enthusiasm for layer-2 technologies and its exploration of how to integrate more protocols into its system. The exchange is particularly interested in open-source solutions, zero-knowledge proofs, multi-party computation, and on-chain scaling possibilities. The team’s collaborative work environment enables them to stay at the forefront of the ever-evolving crypto landscape.

This move by Kraken seems to echo the broader trend in the cryptocurrency exchange industry, with exchanges actively seeking to leverage layer-2 solutions to enhance the efficiency and scalability of their operations.

Following in Coin base’s Footsteps

Kraken’s potential venture into the layer-2 network arena appears to follow in the footsteps of its rival, Coinbase. Just three months ago, Coinbase introduced its layer-2 network, known as Base. The base was developed in collaboration with the team behind Optimism, an Ethereum-based layer-2 blockchain solution. Since its launch, Base has rapidly become one of the largest layer-2 networks on the Ethereum blockchain, alongside other notable layer-2 solutions like Polygon and Arbitrum.

The base has achieved remarkable growth, boasting over 52 million unique addresses and experiencing a daily increase of 138,000, according to data from Base Scan. The speed and efficiency of layer-2 networks make them an attractive solution for crypto exchanges looking to streamline their operations and reduce transaction costs.

Mixed Reactions from the Crypto Community

The news of Kraken’s potential entry into the layer-2 network space has sparked diverse reactions within the cryptocurrency community. Some members are enthusiastic about the development, viewing it as a positive step towards greater adoption and integration of layer-2 technologies. These solutions are seen as essential for addressing the scalability and cost challenges that have plagued the cryptocurrency industry.

However, there are also voices of scepticism, with some arguing that the crypto space already has a sufficient number of layer-2 networks. These critics contend that the focus should be on optimizing and improving existing solutions rather than introducing new ones. The discussion around Kraken’s potential layer-2 network launch reflects the broader debate in the crypto world about the balance between innovation and consolidation.

In conclusion, Kraken’s exploration of a potential layer-2 network represents a noteworthy development in the cryptocurrency exchange industry. While it remains to be seen whether Kraken will officially enter this domain, the pursuit of layer-2 solutions to address scalability and efficiency challenges is a trend that is likely to continue shaping the crypto landscape in the coming months and years. The industry will closely watch Kraken’s next moves and how they contribute to the ongoing evolution of cryptocurrency infrastructure.

By Nadeem Alam

As the Founder of Decryptcall and a believer of blockchain technology since 2019, I leverage advanced technologies to create impactful marketing strategies for decentralized businesses. I possess a strong grasp of blockchain, cryptocurrency, and decentralized applications. Connect on TG: @nadeemdc

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