New Blockchain From Kraken Expected To Debut In Early 2025

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As a seasoned analyst with years of experience navigating the ever-evolving landscape of cryptocurrencies and blockchain technology, I find Kraken’s move to launch its own blockchain, Ink, an intriguing development. The company’s decision to build on Optimism’s Superchain and align with Ethereum’s ecosystem is a strategic one that could potentially leverage the security and governance standards of these established platforms.

The well-established US cryptocurrency trading platform Kraken, currently ranking sixth in global trading volume, is preparing for the launch of its homegrown blockchain, Ink, around early 2025. This innovative platform aspires to become a hub for decentralized applications (dApps), empowering users to engage in peer-to-peer transactions such as trading, borrowing, and lending tokens without relying on third parties.

Kraken’s Ink Blockchain Goals

As an analyst, I’ve been closely examining the strategic moves of Ink, and it seems they are planning to leverage technology akin to Coinbase’s Base. Since its debut about a year back, Base has rapidly grown into one of the leading DeFi platforms, a testament to its efficiency and innovation.

According to Andrew Koller, the creator of Ink, it’s planned to release a testing network by the end of this year. This testnet will enable developers to try out their applications prior to the launch of the blockchain for both retail and institutional users in Q1 2025.

Constructed upon the foundation of Optimism’s Superchain, Ink aims to enhance user interaction with premier Decentralized Finance (DeFi) platforms, services, and communities, as stated in their blog post published on Thursday.

The upcoming blockchain is designed to coordinate with the larger Ethereum community by utilizing Ethereum’s security features and becoming part of the Superchain, a combined network of blockchains that uphold common security and administrative rules.

Koller underscored that Ink stands out as the sole blockchain backed by a significant Western exchange, dedicated to providing an “ideal Decentralized Finance (DeFi) experience.” Their goal is to cultivate a “resource-wise” environment that values community engagement and ingenuity, all while making sure that DeFi advantages are within everyone’s reach.

Embracing an exclusive blockchain system is in line with the prevailing industry pattern among cryptocurrency exchanges, which have witnessed substantial expansion and financial success due to their blockchain-related projects.

Significant instances involve platforms like Binance‘s BNB Smart Chain and Coinbase’s Base, which have effectively boosted user interaction and trading activity.

Ink To Support RWAs And Advanced Lending Applications

Upon its debut, Ink is projected to accommodate more than a handful of applications, such as decentralized trading platforms and collectors. Koller envisions that the blockchain may one day facilitate the real-world asset (RWA) industry and sophisticated lending solutions.

At first, Kraken is set to function as the transaction sequencer for the chain, handling and arranging transactions to produce income. Yet, Koller hinted that this task will shift towards a decentralized model, enabling several entities to jointly shoulder the responsibility.

With Kraken progressing on its Ink project, around forty team members are fully committed to its execution. Moreover, the company has plans to engage with developers by organizing events, one of which is their attendance at Devcon in Thailand slated for November.

Established in 2011, in the heart of San Francisco, Kraken has been steadily broadening its services and is contemplating a possible initial public offering (IPO). Much like other crypto-related companies, the direction of Kraken could be impacted by impending changes in U.S. cryptocurrency regulations, particularly as we approach the upcoming elections.

Last year, the exchange underwent regulatory review after allegations arose that it was functioning as an unlicensed broker by the U.S. Securities and Exchange Commission (SEC). However, in February 2023, Kraken resolved separate claims concerning its staking service offerings.

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2024-10-25 17:42