Charles Hoskinson, Cardano founder, has hinted at a potential collaboration with cryptocurrency exchange Kraken, particularly in the creation of a Layer-2 (L2) network.
Insight Gained From Cardano Founder’s Post
On November 12, Hoskinson made a post on the X app indicating his interest in inking a partnership deal with Kraken for the development of an L2 network. It is worth noting that the top United States crypto exchange is currently in search of a blockchain development partner that can help it create its L2.
Earlier this week, news that Kraken is seeking an alliance with the likes of Polygon and Matter Labs made the headlines. Kraken plans to choose one of these blockchain developers for the implementation of the proposed L2 network. For the crypto exchange, rolling out a Layer-2 network is one of its strategies for providing solutions to novel challenges in the industry, as well as a tactic to tap into emerging opportunities.
With the caliber of entities vying for the position, the competition is building up intensely and the post made by the Cardano founder was a more direct way of “shooting his shot.”
Meanwhile, the decision to launch a Layer-2 network is fast becoming a booming trend amongst major crypto entities. It is part of a move to expand their operations in such a way that it accommodates blockchain technology development. Beyond the creation of an additional stream of revenue, this strategy also helps each of these crypto firms to establish their presence in the ever-evolving digital asset ecosystem.
Coinbase’s Base Showing What is Possible
Of all the crypto companies in operations today, Coinbase’s foray into the L2 scene has made the most significant impact.
Markedly, the American crypto trading behemoth launched Base, its L2 network a few months ago. Base is built on the OP Stack, a scalable tech stack from the team behind Optimism (OP). Ever since it was launched, it has enhanced the efficiency and user experience of running DApps on Ethereum.
In terms of Total Value Locked (TVL), Base has exceeded $300 million, making it the 10th most popular chain. Generally, the L2 network has contributed to the upscale in Coinbase’s market share. Notably, social protocols like Friend Tech have further boosted the outlook of Base and Cardano Founder appears optimistic to help Kraken chart a similar path if considered for the historic job.