Cardano founder Charles Hoskinson has proposed collaborating with cryptocurrency exchange Kraken to develop the exchange’s Layer-2 solution.
Kraken is currently seeking a blockchain developer to improve its technological capabilities, and Hoskinson’s proposal is one of several that the exchange is considering.
Cardano: Hoskinson Eyes Partnership with Kraken
Cardano founder Charles Hoskinson proposed a partnership with Kraken, a major cryptocurrency exchange. The proposal is aimed at developing a Layer-2 network. The proposal coincides with Kraken’s search for a blockchain developer to enhance its technological capabilities.
Earlier this week, it was reported that Kraken was considering partnerships with Polygon and Matter Labs. These partnerships are for the Layer-2 network implementation. The cryptocurrency exchange was keen on choosing one of the blockchain developers mentioned above to help implement the Layer-2 network. Developing a Layer-2 network is part of Kraken’s strategy. This is to address emerging challenges in the crypto industry and explore new market opportunities.
The race to become Kraken’s Layer-2 network partner is heating up gradually. Several major crypto entities and blockchain developers are vying for the position. Cardano founder Charles Hoskinson directly contacted Kraken CEO Jesse Powell in a bold move. He was interested in forming a partnership to develop the exchange’s Layer-2 network.
This proactive approach highlights the intensifying competition among crypto players seeking to align themselves with prominent exchanges like Kraken. Launching Layer-2 networks has become a strategic move for major crypto entities and exchanges. This will enable them to expand their operations beyond mere trading platforms.
By actively engaging in blockchain technology development, these firms create new revenue streams. Also, they will solidify their position as industry leaders, gaining access to emerging markets and opportunities.
Pursuing a Layer-2 network partnership with Kraken exemplifies this trend, as it presents a chance to collaborate with a well-established exchange and shape the future of crypto technology. With Hoskinson’s proposal and the ongoing efforts of other contenders, the competition for Kraken’s partnership is undoubtedly intensifying. Indeed, it is making it an exciting spectacle to witness in the ever-evolving crypto landscape.
Coinbase Takes the Lead
Coinbase’s successful venture into Layer-2 with Base has set a high standard for other crypto players, demonstrating the immense potential of this technology. Just a few months ago, the launch of Base, Coinbase’s Layer-2 network, generated significant buzz and adoption within the crypto community.
Built on the OP Stack, a scalable tech stack developed by the Optimism team, Base has significantly enhanced the efficiency and user experience of running decentralised applications on Ethereum.
With its total value locked (TVL) surpassing $300 million, Base has emerged as the most popular Layer-2 chain. This inclusion contributes to Coinbase’s expanding market share.
Interestingly, the success of Base has also been fueled by the adoption of social protocols like Friend Tech, further solidifying its position in the Layer-2 landscape.
Inspired by Coinbase’s achievements, Cardano founder Charles Hoskinson is eager to replicate this success for Kraken. However, this will be possible if his proposal for a Layer-2 partnership is accepted.