Kraken, the prominent crypto exchange, is about to make a strategic leap into the world of Layer-2 networks, with Polygon being strongly considered.
In the article, we will delve into Kraken’s efforts and explore its potential partnerships with leading blockchain developers in addition to Polygon: Matter Labs and Nil Foundation.
Summary
Cryptocurrency exchange Kraken seeks entry into layer 2 blockchain networks among candidates: Polygon, Matter Labs and Nil Foundation
Kraken, one of the leading cryptocurrency exchanges in the US, is making strides in the blockchain arena by considering the creation of its own Layer-2 network.Â
This strategic move is aimed at keeping pace with rival Coinbase, which successfully launched its own Layer-2 network, Base, earlier this year.
Choosing the right blockchain developer to lead this ambitious venture is of paramount importance.
Sources familiar with the matter have indicated that Kraken is actively exploring partnerships with some of the leading blockchain technology companies.
Among the candidates being considered are Polygon, Matter Labs and Nil Foundation. It is worth noting, however, that these discussions remain confidential and fluid at this stage.
Coinbase’s foray into tier 2 networks has been a catalyst for this industry development.
Coinbase’s tier-2 network, Coinbase.Base, leverages the OP Stack, which was originally created by the OP Labs team famous for building Optimism, the second largest tier-2 network operating on the Ethereum blockchain.
This demonstrates the potential of layer 2 solutions to improve the scalability and efficiency of the blockchain.
Candidates for the Kraken cryptocurrency exchange
Polygon, a prominent developer in the Ethereum ecosystem, has pioneered Ethereum scaling solutions.Â
Its Polygon PoS network, along with the recent introduction of Polygon zkEVM, has garnered considerable attention in the blockchain space. This framework allows developers to create their own blockchains, enabling greater scalability and usability.
Matter Labs, on the other hand, is known for its zkSync layer-2 network, a technology offering designed to facilitate layer-2 development.
As Kraken advances its Layer-2 ambitions, the consideration of Matter Labs as a partner demonstrates the importance of zero-knowledge testing and innovative cryptographic techniques to achieve scalability and security.
Big move by the US exchange
In line with its growing interest in Layer-2 solutions, Kraken has taken proactive measures by posting a job opening for a ‘Senior Cryptography Engineer’.
This position requires expertise in modern cryptography, including Zero-Knowledge (ZK) proofing, reflecting Kraken’s commitment to using state-of-the-art cryptographic techniques in its Layer-2 implementation.
The job description emphasises the exploration of open source layer-2 technologies, multi-party computing, and the integration of multiple protocols and distributed applications into the Kraken ecosystem.
It is clear that Kraken’s exploration of a layer-2 network is indicative of a broader trend in the cryptocurrency industry.Â
Established operators are not only looking to diversify their offerings, but also to leverage blockchain technology for new revenue streams and operational improvements.
The emergence of layer 2 solutions enables faster and more convenient transactions, ultimately improving the user experience and expanding the utility of cryptocurrencies.
In conclusion, Kraken’s pursuit of a layer 2 network is a strategic move that aligns with the evolving landscape of cryptocurrency and blockchain technology.
While the specific details of this initiative remain confidential, it underscores the importance of layer 2 solutions in addressing scalability and performance challenges in the cryptocurrency industry.
By exploring partnerships with blockchain developers such as Polygon, Matter Labs and Nil Foundation, Kraken aims to secure its position as a leader in decentralised finance and blockchain technology.
