Kraken, a United States-based cryptocurrency exchange, is reportedly exploring the possibility of creating its own layer-2 network. This network would be built using technologies from blockchain firms like Polygon Labs, Matter Labs, and Nil Foundation, according to sources cited by CoinDesk. The move aims to enhance the exchange’s capabilities and scalability while integrating these innovative technologies.
The unnamed sources said discussions surrounding Kraken’s intentions to launch a layer-2 network are still ongoing, and there may be other teams involved.
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 Kraken spokesperson said.
While Kraken has refrained from confirming or denying the rumor about the layer-2 network launch, the exchange has recently added a job posting and is looking to hire a “Senior Cryptography Engineer.” In describing the employee’s role, Kraken revealed that it was passionate about layer-2 technologies and is exploring how to integrate more protocols into its system.
We are enthusiastic about open source, Layer 2 technologies, zero-knowledge proofs, multi-party computation, and continuously strive to explore the potential of on-chain scaling solutions. Our collaborative work environment allows us to stay ahead in the ever-changing crypto landscape. The team has recently embarked on exploring how more protocols and decentralized applications can be integrated into Kraken,” the exchange stated.
Kraken’s consideration of launching its own layer-2 network is in line with a trend in the cryptocurrency industry. Coinbase recently introduced its layer-2 network called Base, which was developed in collaboration with Optimism, an Ethereum-based layer-2 blockchain. Base has rapidly become one of the largest layer-2 networks on the Ethereum blockchain, alongside other solutions like Polygon and Arbitrum. It has gained significant adoption, with over 52 million unique addresses and a daily increase of 138,000, according to Base Scan data.
The crypto community’s response to Kraken’s potential move varies, with some supporting the initiative, while others argue that there may already be sufficient layer-2 networks in the industry. The decision to launch such a network involves considering factors like scalability, user adoption, and network security.
