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Kraken Prepares to Compete with Coinbase by Launching Its Own Layer-2 Network

Kraken Prepares to Compete with Coinbase by Launching Its Own Layer 2 Network

Kraken, one of the leading cryptocurrency exchanges in the United States, is preparing to launch its own Layer-2 (L2) network on the blockchain.

This move follows Coinbase’s successful launch of its own L2 solution, known as Base.

CoinDesk, a prominent news source in the cryptocurrency world, published an exclusive article that unveiled Kraken’s ambitious plans.

According to undisclosed sources cited in the article, Kraken is currently considering possible collaborations with several renowned blockchain technology firms.

These potential partners include Polygon, Nil Foundation, and Matter Labs, all of which have demonstrated expertise in blockchain scaling solutions and Layer-2 technology.

A Layer 2 is a blockchain scalability solution that operates on a main chain (such as Ethereum) to alleviate congestion and improve efficiency.

Layer 2 are a solution to address scalability issues in blockchain by allowing greater performance and functionality without overloading the main chain.

Kraken recognized the company’s constant search for new challenges and opportunities in the industry

The company appears poised to expand its presence as a blockchain builder, possibly driven by a desire to tap into new revenue streams or improve its existing operations.

At the beginning of this year, Coinbase garnered significant attention by introducing its proprietary L2 network, named Base, which is constructed on the Ethereum blockchain. Base aims to offer developers of decentralized applications (dApps) a secure, cost-effective, and user-friendly environment.

Kraken Plans to Launch Layer-2 Blockchain to Rival Coinbase’s Base

Importantly, Base gained significant traction, with a report revealing that it acquired one million unique addresses in the first 11 days of its launch.

This impressive achievement for Base underscores the growing adoption of Layer 2 networks in the cryptocurrency industry.

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