On November 12, Charles Hoskinson, the founder of Cardano, expressed interest in collaborating with Kraken, a leading cryptocurrency exchange, for the development of a Layer-2 (L2) network. This proposal comes as Kraken actively seeks a blockchain development partner to assist in creating its L2 infrastructure.
Background Of Cardano-Kraken Collaboration
Kraken is currently exploring partnerships with blockchain developers, including Polygon and Matter Labs, to implement its proposed Layer-2 network. This strategic move aligns with Kraken’s goal of addressing industry challenges and capitalizing on emerging opportunities in the crypto space.
Hoskinson’s post on the X app serves as a direct outreach to Kraken CEO Jesse Powell, indicating a keen interest in contributing to the development of Kraken’s L2 network. The competition for this collaboration is intense, with various entities vying for the opportunity.
Rising Trend in Layer-2 Networks
Major crypto entities are increasingly embracing Layer-2 networks as part of their strategy to expand operations and accommodate blockchain technology development. Beyond generating additional revenue streams, these networks also allow crypto firms to solidify their presence in ever-evolving digital asset ecosystem.
Coinbase’s Impactful Entry
Coinbase’s introduction of Base, its own L2 network built on the OP Stack from the team behind Optimism (OP), has made a significant impact in the industry. Launched a few months ago, Base has surpassed $300 million in Total Value Locked (TVL), also securing its position as the 10th most popular chain. The L2 network has not only improved the efficiency and user experience of running decentralized applications (DApps) on Ethereum but has also contributed to the growth of Coinbase’s market share.
Outlook and Optimism
The success of Coinbase’s Base has also set a precedent for the potential impact of a well-implemented Layer-2 network. While Hoskinson appears optimistic about assisting Kraken in charting a similar path, emphasizing the benefits of such networks for enhancing market presence and overall ecosystem development.
While the competition among major crypto exchanges intensifies to establish effective Layer-2 solutions, the proposed collaboration between Cardano’s founder and Kraken. It also underscores the significance of strategic partnerships in navigating the evolving landscape of blockchain technology.