Kraken to introduce its Ink blockchain for DeFi in early 2025
The cryptocurrency exchange Kraken plans to introduce its own blockchain earlier next year. The blockchain aims to make decentralized finance (DeFi) simpler for a wider range of users while simultaneously making it more accessible and affordable.
The blockchain named Ink will remove middlemen from the centralized cryptocurrency exchanges current position in Web3 and cryptocurrency by allowing users to trade, borrow, and lend tokens, according to a Bloomberg report.
Following the success of similar projects like Coinbase's Base blockchain and Binance's BNB Smart Chain, Kraken has decided to develop its own blockchain, the post added.
👀 ⏳ https://t.co/7Ws0VFEhKP
— Kraken Exchange (@krakenfx) October 23, 2024
Kraken Layer-2 Native blockchain
The exchange plans to incorporate DeFi tools like yield-generating platforms and decentralized exchanges (DEXs) into the Kraken Wallet app.
Ink founder Andrew Koller said that the decentralized protocol will not have its own native cryptocurrency asset in comparison to other blockchains such as Bitcoin, BNB Chain, Optimism, and Polygon. In order to make it "cheaper and more intuitive to use DeFi to earn yield and for other functions," Kraken aims to refocus the energy associated with token ownership on expanding the protocol's features.
In an interview with Bloomberg, Koller said that this move would eventually enable users to switch between centralized and decentralized services. According to the report, through Kraken's wallet, which the protocol's founder Koller said is user-friendly, users will be able to access blockchain applications.
Kraken’s Ink set to tap into the growing demand for DeFi services
Kraken's positioning of Ink is also expected to capitalize on the growing demand for DeFi services by serving as Ink's sequencer at first and generating income from overseeing and organizing network transactions.
Bloomberg said that this model is profitable and functions similarly to Coinbase and Binance, given that Coinbase made $53 million in sequencer revenue in the second quarter.
The future of ink
Before the official launch of its blockchain, Ink plans to provide a developer testnet later in 2024 so that developers can test out decentralized apps (DApps). With plans to eventually offer real-world assets and advanced lending platforms, Ink will begin with over a dozen DApps to improve the user experience, the post added.
The company plans to organize a number of gatherings, such as one called Devcon to be held this November, and Thailand will host one of the developer events. This will gather more developers to build on the procool. Koller said that approximately 40 people were employed by Kraken to work on Ink.
What is ink?
Ink is a state-of-the-art Layer 2 (L2) blockchain based on Optimism's Superchain. Ink will act as a seamless bridge to DeFi, enabling users to move onchain with ease and confidence. Ink is a part of the larger Ethereum ecosystem and is based on Optimism's open source, MIT-licensed OP Stack codebase. Ink will be part of the Superchain and gain access to the security of Ethereum, the largest blockchain platform in the world.
The only blockchain with the support of a major Western exchange that is dedicated to creating the greatest DeFi experience is Ink. Users building on ink will have comprehensive support, DeFi focus, and enhanced visibility, which helps its builders show their products to the world.
In addition, Kraken has been venturing out into other sectors of the cryptocurrency market. The wrapped Bitcoin (kBTC), which will be introduced on the Ethereum and OP Mainnet chains, was recently unveiled by the global leading crypto exchange. The exchange recently received a Class F Digital Business License from the Bermuda Monetary Authority, and on October 3, it launched a derivatives trading platform in Bermuda.
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