Author: James Smith, CoinTelegraph; Compilation: Deng Tong, Golden Finance
1. Introduction to Kraken's Ink blockchain
Ink is a layer 2 bridge being developed by Kraken, aimed at enhancing the efficiency of decentralized finance (DeFi) by increasing transaction speeds, lowering costs, and improving flexibility. The Ink testnet will be launched from November 12 to 15, 2024, during DevCon in Bangkok, with the mainnet planned for release in the first quarter of 2025.
Kraken's Ink seamlessly integrates centralized and decentralized environments, providing users with all the necessary tools and services while alleviating common challenges associated with these environments. The solution operates as a layer 2 (L2) solution on Ethereum, alleviating pressure on the layer 1 (L1) chain.
"L2 solution" refers to protocols built on top of the underlying blockchain (also known as L1 blockchain) to improve its characteristics, such as scalability and privacy. These protocols take transaction processing from the L1 blockchain, using it only for transaction settlement. Common L2 solutions include state channels, sidechains, optimistic rollups, and zero-knowledge rollups.
Ink is developed based on the open-source, MIT-licensed OP Stack codebase and integrates with the Ethereum ecosystem. Ink will be a part of the Optimism Superchain, which is an L2 blockchain network sharing a common development stack, security, bridging, and communication layer.
Ink will allow you to use Ethereum's proven security while participating in a system that actively supports Ethereum scalability. The Optimism Superchain will facilitate interoperability across its entire ecosystem and beyond, allowing liquidity to move easily between the chains that make up the Superchain.
2. How does Ink differ from other L2 solutions?
Ink will bridge the sometimes daunting world of DeFi with the familiar environment of centralized cryptocurrency exchanges. For newcomers, it will make the process of going "on-chain" much easier. By allowing consumers to easily enter DeFi, it aims to alleviate the anxiety often associated with DeFi.
Ink is a blockchain supported by exchanges specifically designed for DeFi, aiming to simplify the user experience and expand access to decentralized finance. By offloading transaction processing from the main blockchain, Ink seeks to improve efficiency and scalability within the DeFi ecosystem.
With Ink, Kraken aims to bring institutional credibility into the decentralized space. This approach is not just another L2 solution; it combines the strengths and weaknesses of centralized and decentralized systems. By eliminating or reducing friction points that challenge this transition, Ink allows users to move easily between the two worlds.
Security is another parameter that sets Ink apart from other L2 bridges. Ink's robust security standards are designed to reduce risk, which is crucial in a DeFi environment. As for block formation speed, Ink will provide a one-second block time from day one and is committed to reducing it to sub-second levels.
In the first quarter of 2024, Optimism's daily active addresses reached 89,000, a 23% increase from the previous quarter. Optimism's daily transaction volume reached 470,000, a 39% increase from the previous quarter.
3. What makes interoperability a key feature of Ink?
Ink prioritizes cross-chain interoperability, enabling users to seamlessly transfer assets between different blockchains. This feature makes Ink a versatile platform within the DeFi ecosystem.
Ink is built on the OP Stack, benefiting from the security of Ethereum while adding value to the Superchain's L2 solution network. The Optimism Superchain acts as a unified chain network, enhancing the performance of the entire Ethereum ecosystem and expanding the range of efficiently functioning decentralized applications (DApps).
Ink will enhance the performance of DApps and protocols on the Superchain by automating processes and streamlining workflows, resulting in smoother transitions for on-chain operations.
By facilitating cross-chain interoperability, Ink will provide users with access to a wider range of DApps and resources across multiple networks.
The Asia-Pacific region is witnessing the fastest growth in the blockchain interoperability market. This surge is driven by the widespread adoption of blockchain technology and strong government support in countries such as China, Japan, and South Korea. The region is experiencing a significant compound annual growth rate (CAGR) of over 65%.
4. What does Ink's economic model look like?
Ink is a platform with a thoughtful economic model. According to Bloomberg, Kraken will launch it with a serialized revenue model, a strategy that has proven profitable in the case of Coinbase.
With Ink, Kraken has carefully crafted a long-term economic model to promote the expansion of the ecosystem. Kraken will act as the serializer for Ink, which means Kraken will arrange transactions in a consolidated manner before sending them to Ethereum and earning revenue for that service. For example, Coinbase generated $53 million in serialized revenue through Base alone in the second quarter of 2024.
Additionally, Ink is not going it alone; it starts with over a dozen upcoming DApps. These applications are being developed for sectors such as advanced financing platforms and real-world assets.
5. How do users benefit from the launch of Ink?
Ink will provide developers with an environment equipped with tools, technical support, and funding opportunities. It will enable users to integrate their blockchain projects with Ink. By leveraging aggregation, automation, and abstraction technologies, Ink helps developers create user-centric experiences.
As an end user, if the Ink token is released, you can prepare for potential future airdrops.
With Ink, developers can create applications that help users access on-chain opportunities. They can tap into ecosystems populated by other DeFi-focused builders, where they can leverage community and composability to turn their DeFi ideas into reality.
If you are a developer, you can apply for the Ink Apprentice Dev role by showcasing your experience. This can be done by verifying that you have deployed smart contracts on one of the following blockchains: Ethereum, Optimism, Base, Arbitrum, Polygon, or BNB Chain.
Alternatively, you can qualify by having at least one year of a GitHub account.
