Kraken Announces New Layer 2 for DeFi

Cryptocurrency exchange Kraken has unveiled its new Layer 2 (L2) blockchain, Ink, designed to provide users with a seamless and accessible gateway to decentralized finance (DeFi).

Built on Optimism's Superchain, Ink aims to simplify the complexities often associated with interacting with decentralized applications (dApps) and protocols, Kraken said in an announcement on Thursday.

"We’re creating a destination that bridges the offchain and onchain world through a single, integrated system. We believe this focus on making onchain simpler is the biggest way to break down barriers to adoption," Ink said on X.

Kraken's decision to launch Ink aligns with a growing trend among exchanges to expand their offerings into the DeFi space. By providing a dedicated L2 platform, Kraken can offer its 10 million users a more comprehensive range of services, including access to a wider variety of dApps and protocols.

The success of Ink will depend on several factors, including its ability to attract developers to build on the platform and its ability to provide a compelling user experience.

Ink will launch it's testnet in November at Devcon 7 in Bangkok, where it is hosting a developer-focused event, and plans a Q1 2025 launch of its mainnet.

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While the L2 landscape is becoming increasingly competitive, with projects like Coinbase's Base gaining significant traction and the recent launch of X-Layer by OKX, Ink has several unique advantages to offer. Firstly, it leverages the trust and reputation that Kraken has built over the years.

This can be a significant advantage in attracting users to the platform and instilling confidence in the project. Secondly, Ink is part of the Superchain ecosystem, which benefits from the security and scalability of Ethereum while offering improved performance.

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As more exchanges and financial institutions enter the L2 space, we can expect to see increased competition and innovation. This ultimately benefits users and developers, as it drives down costs and improves the overall experience of interacting with decentralized applications.