Kraken, a titan in the U.S. cryptocurrency exchange arena, is on the hunt for a partner to construct its Layer 2 blockchain network. With an eye towards blockchain developers like Polygon, Matter Labs, and the Nil Foundation, Kraken aims to make a strategic choice that will shape its future in blockchain technology.
Aligning with Coinbase’s Trailblazing Move
Following in the footsteps of Coinbase, its industry counterpart, Kraken’s pursuit of its own Layer 2 network represents a significant strategic move. Coinbase’s Base network, which launched earlier this year, set the precedent for exchanges stepping into the blockchain builder space.
Potential Partners Under Scrutiny
Kraken is currently assessing various technology options offered by potential partners. These deliberations are under wraps, as the exchange seeks the optimal foundation for its new network. The discussions include prominent teams like Polygon, known for its Ethereum scaling solutions, and Matter Labs, the brains behind the zkSync Layer 2 network.
Kraken’s Stance on Innovation
A Kraken spokesperson encapsulated the company’s ethos, stating, “We’re always looking to identify and solve new industry challenges and opportunities.” This statement underlines Kraken’s commitment to staying at the forefront of the crypto industry’s evolution.
The Drive to Blockchain Building
Kraken isn’t alone in its aspirations. Established crypto firms are increasingly venturing into blockchain development, eyeing it as a potential revenue stream or a natural expansion of their services. Coinbase’s Base, utilizing Optimism’s OP Stack, exemplifies this trend.
Kraken’s Recruitment Move
A recent Kraken job posting for a “Senior Cryptography Engineer” highlights the company’s focus on state-of-the-art cryptographic technologies, such as zero-knowledge proofs. The role is set to play a pivotal part in Kraken’s Layer 2 solution development and integration of protocols and decentralized applications.
Kraken vs. Coinbase: The Race to L2 Supremacy
Kraken’s exploration of partnerships to develop its L2 network is a direct response to Coinbase’s successful launch of Base. This network, based on Optimism’s technology, has already garnered significant interest, with $139 million in pre-launch deposits. Kraken is positioning itself to compete by leveraging similar cutting-edge technologies.
The Role of Polygon and Others in Blockchain Scalability
Polygon’s comprehensive toolkit for blockchain network development on the Ethereum Mainnet has made it a frontrunner in this space. Kraken’s interest in Polygon, as well as in Matter Labs and Nil Foundation, suggests a drive to capitalize on advanced, scalable blockchain solutions.
Kraken’s Open-Source and Decentralization Agenda
The company’s job listing for a cryptography expert underscores its dedication to open-source technology, Layer 2 scaling, and on-chain solutions. Kraken is clearly set on bolstering its network with protocols that will facilitate more seamless and decentralized applications.
Awaiting Kraken’s Strategic Decision
As Kraken navigates through potential partnerships, the crypto community eagerly anticipates which blockchain developer will be chosen to spearhead the development of Kraken’s Layer 2 network. This partnership will be crucial in leveraging Kraken’s significant customer base and solidifying its position as a trusted brand in the competitive crypto exchange market.
Kraken’s Strategic Path Forward
Kraken’s proactive search for a Layer 2 network partner demonstrates its commitment to innovation and market leadership. By potentially joining forces with leading blockchain technology firms, Kraken aims to create a robust, scalable blockchain network that will enhance its service offerings and fortify its market standing. The crypto community watches with bated breath as Kraken takes this bold step into the future of blockchain technology.
