Compiled by: Felix, PANews.
On October 24, crypto exchange Kraken announced plans to launch the L2 network Ink on Ethereum in early 2025. This network will focus on DeFi, allowing token trading and lending without intermediaries. The Ink testnet will launch later this year, and developers will be able to try out Ink applications on this testnet. The Ink mainnet is expected to open to retail and institutional users in the first quarter of next year.
Ink is built on the open-source, MIT-licensed OP Stack codebase of Optimism, joining the broader Ethereum ecosystem. In addition to benefiting from Ethereum's security, Ink will also become part of the OP Superchain. This unified blockchain network shares security, governance, and values, using a common standard codebase to help scale Ethereum.
It is worth mentioning that Ink founder Andrew Koller stated in an interview that Kraken does not intend to issue its own token. Additionally, Kraken collaborated with Optimism to release a limited edition NFT to thank early supporters.
Currently, about 40 people on the Kraken team are developing Ink. The company is already planning events for developers, including Devcon in Thailand this November.
After benefiting from launching their own chains, trading platforms are competing to follow suit.
After seeing how blockchain helped drive Binance's revenue and user growth, various crypto trading platforms have launched their own blockchains. Binance's BNB Chain and its related tokens have become some of the most popular tokens. Coinbase's venture into this area has also been successful, with a 300% quarter-over-quarter increase in transaction volume on Base, driven by app and memecoin launches. Recently, even the decentralized exchange Uniswap announced the launch of its L2 network.
Related reading: What makes the L2 network Unichain launched by Uniswap different?
Although DeFi applications have existed for years, they are considered too complex for the average user. Kraken is trying to simplify the experience, making it cheaper and more intuitive to earn yields and perform other functions using DeFi. Ink founder Andrew Koller stated that Ink applications will be offered through the Kraken Wallet app.
"It's a very easy-to-use, Apple-like experience." "Over time, our users will have both centralized and decentralized ecosystems. We want you to feel like you are doing something familiar."
Ink is expected to launch with over a dozen available DAPPs, such as decentralized exchanges and aggregators. Kraken will initially serve as Ink's sequencer, making money by organizing and managing transactions on the network, but this function will ultimately be decentralized and shared by multiple parties. According to Coinbase's shareholder letter, the sequencer revenue for its Layer2 network Base in the second quarter was $53 million.
Optimism has become a hot commodity.
Creating your own L2 network is not a new concept. Other L2 networks (such as Polygon, zkSync, Starknet, and Arbitrum) have launched their own stacks, hoping that various institutions will choose their technology.
However, Optimism has recently become highly sought after, becoming a hot commodity. Mainstream crypto companies and even non-crypto companies are choosing to use Optimism as the blueprint for their networks. Companies developing rollups using Optimism code include Base, Sony, Uniswap, and World Network (formerly Worldcoin), backed by Sam Altman.
The Optimism chain accounts for nearly half of the over 100 rollup transactions on Ethereum. There are at least 43 rollup projects using Optimism technology, with a total TVL of $18.1 billion. These are referred to by the head of the Optimism project as the "Superchain," while only 29 projects use Arbitrum technology.
Despite the surge of rollups diluting Ethereum's liquidity, Optimism plans to launch a new token standard by 2025 to achieve interoperability between blockchains using its code.
Kraken stated in a statement: "Ink will support SuperchainERC20 at launch, allowing users to easily move within the Superchain ecosystem and laying the groundwork for more seamless interactions between Ink and other OP Chains."
Kraken was established in 2011 and is headquartered in San Francisco. It is currently expanding into new product areas and markets and is continuing to consider the possibility of an initial public offering (IPO). Earlier this year, Kraken was considering a final round of financing before the IPO.
Like many cryptocurrency companies, Kraken's future may depend on whether U.S. cryptocurrency policy will change after the upcoming elections. Last year, the U.S. SEC charged Kraken with operating unregistered brokers, dealers, exchanges, and clearing agencies. In February 2023, Kraken reached a separate settlement with the U.S. SEC regarding its staking business, agreeing to pay $30 million in illegal gains, prejudgment interest, and civil penalties.
Related reading: Kraken is about to enter U.S. stock trading, seeking new paths for crypto platforms under regulation and bear markets.
