Kraken neither confirmed nor dispelled the rumor.
Stories suggesting that US-based crypto trade Kraken is in search of partnerships to allow it to develop its personal Layer 2 community resolution have emerged.
Per the report, the trade is contemplating a partnership with Polygon, which is famous for its Ethereum scaling options, to construct its Layer 2 community. Matter Labs and Nil Basis are additionally being appraised for the function. In line with unnamed sources. Kraken will associate with one of many firms and use their expertise as the premise for its Layer 2 options.
Requested concerning the growth, a Kraken spokesperson acknowledged that the trade had no new info to share with the general public on the time. “We’re all the time trying to determine and remedy for brand spanking new business challenges and alternatives,” they concluded.
Kraken Stays Mute about Layer 2 Community Plans
What’s attention-grabbing is that Kraken neither confirmed nor dispelled the rumor. As an alternative, the trade is trying to make use of a Senior Cryptography Engineer.
In line with a job advert posted on the corporate web page, such a person should possess data of recent cryptography together with zero-knowledge proofs, and could also be required to design and implement Layer 2 options. This additional means that Kraken might certainly be contemplating a Layer 2 community to reinforce its providers.
If confirmed to be true, Kraken is not going to be the primary crypto agency to take action. The enlargement into blockchain growth represents a broader pattern amongst cryptocurrency corporations trying to diversify their choices. Kraken will probably be following Coinbase, who launched its Base community in August.
Base is constructed from the OP Stack supplied by the OP Labs group behind Optimism. Not like the Ethereum mainnet, the community guarantees enhanced transactional throughput and decrease charges. Thus, even earlier than its public launch, the Base community amassed $139 million in deposits. Already, the community has surpassed Optimism and Arbitrum and sits third in complete valued locked (TVL) within the L2 sector. Kraken may even be hoping to enhance its income by this implies.
A Number of Reactions
In the meantime, there have been numerous reactions from the crypto group about Kraken’s potential curiosity in a Layer 2 resolution. Whereas some contemplate the transfer worthwhile, others declare it’s pointless. One X consumer noted that present L2 networks are already “fragmenting liquidity” and one other isn’t wanted.
Regardless of the case, Kraken’s closing resolution will considerably influence the trade’s capability to scale its operations and compete with rivals like Coinbase.
An skilled author with sensible expertise within the fintech business. When not writing, he spends his time studying, researching or instructing.