Kraken’s ambiguous response fuels speculation of layer-2 network development Kraken’s ambiguous response fuels speculation of layer-2 network development
The exchange said it is seeking new opportunities in the industry.
1 min read
Updated: Nov. 7, 2023 at 2:22 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Kraken said it is “always looking to identify and solve for new industry challenges and opportunities,” in a Nov. 7 email sent to CryptoSlate. The exchange made this statement in response to recent speculations about its potential development of a layer-2 network.
While the email neither confirmed nor denied the rumors, it underscored Kraken’s commitment to identifying and resolving industry challenges.
Kraken’s co-founder Jesse Powell also failed to provide additional information about the development. Powell posted a gif on social media platform X on Nov. 7, claiming that he “has no idea.”
Layer 2 networks are scaling solution that builds and improves upon Layer 1. These projects usually aim at providing scalability and speed to the ecosystem.
Over the past week, reports have indicated that Kraken may be following in the footsteps of Coinbase by exploring the establishment of its layer-2 network.
Some reports also suggested that the exchange might collaborate with crypto firms like Polygon or Matter Labs to develop the rumored layer-2 protocol.
The specifics of such a partnership, if it materializes, remain undisclosed at this stage.
Meanwhile, the rumored scaling network gained further traction due to a recent job posting on Kraken’s website. The job posting advertised a position for a Senior Cryptography Engineer responsible for designing and implementing layer-2 solutions.
The job listing expressed enthusiasm for delving into layer-2 technologies and collaborating with others on on-chain scaling solutions. The exchange also mentioned its ongoing exploration of integrating more protocols and decentralized applications into its platform.
Meanwhile, Kraken’s potential move follows a pattern in the crypto industry, where major players are increasingly exploring layer-2 solutions to alleviate the strain on the Ethereum mainnet.
Earlier in the year, Coinbase launched Base, an initiative aimed at supporting Coinbase’s on-chain products and fostering an open ecosystem for developers.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Kraken
Kraken is a San Francisco-based digital asset exchange in euro volume and liquidity that trades various currencies, including Canadian dollars, US dollars, British pounds, and Japanese yen.
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.