United States-based cryptocurrency exchange Kraken is mulling launching its own layer-2 network, CoinDesk reported, citing people familiar with the matter.

According to the report, the crypto exchange is considering using the technology of several blockchain firms, including Polygon Labs, Matter Labs, and Nil Foundation, as the base for the new network.

Kraken Considers Launching Layer-2 Network

The unnamed sources said discussions surrounding Kraken’s intentions to launch a layer-2 network are still ongoing, and there may be other teams involved.

“We’re always looking to identify and solve for new industry challenges and opportunities. We don’t have anything further to share at this time,” a Kraken spokesperson said.

While Kraken has refrained from confirming or denying the rumor about the layer-2 network launch, the exchange has recently added a job posting and is looking to hire a “Senior Cryptography Engineer.” In describing the employee’s role, Kraken revealed that it was passionate about layer-2 technologies and is exploring how to integrate more protocols into its system.

“We are enthusiastic about open source, Layer 2 technologies, zero-knowledge proofs, multi-party computation, and continuously strive to explore the potential of on-chain scaling solutions. Our collaborative work environment allows us to stay ahead in the ever-changing crypto landscape. The team has recently embarked on exploring how more protocols and decentralized applications can be integrated into Kraken,” the exchange stated.

Following Coinbase’s Steps

Kraken’s potential move follows in the footsteps of rival crypto exchange Coinbase, which launched its layer-2 network Base three months ago. Base was built on the OP Stack in collaboration with the team behind Optimism, which is another Ethereum-based layer-2 blockchain.

Within a short time after Base’s launch, the network has grown to become one of the largest layer-2 networks on the Ethereum blockchain, with the likes of Polygon, Arbirtrum, and Optimism. The protocol has also earned the spot as the fastest-growing layer-2 network, having garnered over 52 million unique addresses with a daily increase of 138,000 per data from Base Scan.

Meanwhile, the crypto community has reacted to rumors about Kraken’s intentions, with some members supporting the potential launch and others opposing the move on the basis that the industry already has enough layer-2 networks.

The post Kraken Wants to Launch Its Own Layer-2 Network: Report appeared first on CryptoPotato.

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Filed under: Bitcoin - @ November 7, 2023 2:19 pm