Kraken, one of the world’s oldest and largest cryptocurrency exchanges, announces plans to launch its own blockchain early next year.
Ink, the new blockchain for defi, will make it easier for users to engage in decentralized finance (DeFi) by allowing people to trade, borrow, and lend cryptocurrencies without the need for middlemen.
What is Ink?
Ink will be a Layer-2 (L2) blockchain, meaning that it will be built on top of an existing blockchain (in this case, Ethereum). Additionally, it will be built using Optimism Stack. This framework will allow cheaper and more user-friendly user interaction with DeFi apps.
Kraken’s Ink will be similar to Base chain, the blockchain launched by Coinbase in 2023, which has rapidly become one of the biggest DeFi platforms. Kraken is treading the paths of other exchanges like Coinbase and Binance, who have also created their own blockchains to expand their business and offer more services to their users.
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What’s Next for Ink?
Ink will go through a testing phase later this year with a test network (or “testnet”) where developers will be given a chance to experiment with different apps and features on the blockchain before its full launch in 2025. As Ink becomes open to regular users, Kraken will handle the job of organizing and managing transactions on the Ink network, initially, before this responsibility will be shared with other participants, making the network more decentralized, over time.
While they plan to integrate real-world assets and advanced DeFi applications, such as more sophisticated lending tools, into the platform, contrary to conventional Blockchains, Kraken has decided not to issue its own token along with Ink.
Why is Kraken Launching Ink?
The goal is to make DeFi experience seamless, more accessible and cost-effective for users. By launching its own blockchain, Kraken is set to bring the worlds of centralized and decentralized finance closer together, believing Ink will make it easier for users to interact with DeFi apps, which could lead to more people using these tools.
Strategically, this move also puts Kraken in competition with other major crypto exchanges like Coinbase and Binance, which have already launched their own blockchains. Kraken’s entry into the blockchain space could help them grow their business and offer more alternatives to their customers.
Expanding Beyond Trading
The focus is not just on launching Ink as they are also working on other projects, like Wrapped Bitcoin (kBTC), a type of Bitcoin that can be used on Ethereum and the OP Mainnet showing Kraken’s continued effort to expand into different sectors of the crypto world and offer new products to their users.
In summary, Kraken’s new blockchain, Ink, is expected to optimize DeFi while strengthening the exchange to compete with other major players in the crypto industry.
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