There are speculations that the cryptocurrency exchange Kraken is planning to build a Layer 2 protocol. Will it follow in the footsteps of its competitor, Coinbase?
Cryptocurrency exchanges were heavily affected by declining volume during the bear market. Many exchanges collapsed and went bankrupt. While others had to resort to options such as layoffs to survive the market conditions.
There were heavy regulatory crackdowns on the crypto exchanges, especially after the FTX collapse. Are major crypto exchanges now trying to diversify their business?
Hence, there is speculation that this senior-level position involves the building of a Layer 2 solution. Moreover, there are reports, citing people familiar with the matter, that Kraken might use the technology of Polygon, Matter Labs, and Nil Foundation to support its Layer 2 network.
The primary aim of a Layer 2 is to employ networks or technologies that operate on top of a blockchain protocol. A blockchain network can achieve increased scalability and efficiency with the aid of an off-chain protocol or network.
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.