As a seasoned crypto investor with over a decade of experience under my belt, I must say that Kraken’s announcement to launch its own blockchain, Ink, is a game-changer. Having witnessed the rise and fall of numerous projects, I am always cautious about new developments in this space. However, Kraken’s track record and strategic approach give me reasons to be optimistic.
Kraken, a prominent worldwide cryptocurrency exchange, has unveiled intentions to develop its own blockchain platform. This will enable users to engage with the decentralized finance (DeFi) environment without relying on centralized authorities or intermediaries. Similar steps have been taken by Coinbase, another major player in the industry, according to a report by Bloomberg published on Thursday.
As a researcher delving into the realm of innovative technologies, I find myself drawn to the intriguing development of a novel blockchain named Ink. This groundbreaking creation seems to have been inspired by Base, an Ethereum-based layer-2 scaling solution that operates within the decentralized network owned by Coinbase. The inspiration behind Ink appears to be rooted in addressing some of the complex challenges posed by the trilemma that Base encounters in its protocol.
Kraken to Launch Ink in 2025
Kraken plans to begin the testing phase of the project towards the close of this year, with a full launch expected in early 2025. Upon its release, blockchain developers will have access to this platform where they can construct their decentralized applications. This facilitates peer-to-peer trading, borrowing, and lending of digital assets, eliminating the need for intermediaries.
According to the latest findings, Ink is set to be accessible for both individual and institutional customers upon its debut. Users can interact with blockchain-based apps using Kraken’s user-friendly wallet, as stated by Andrew Koller, the protocol’s creator.
In simpler terms, Koller said to Bloomberg that the user interface is extremely user-friendly, resembling Apple’s, and over time, our users will find two systems – one centralized and one decentralized – interacting seamlessly. We aim for you to have a sense of familiarity while using our platform.
Approximately one dozen applications, such as decentralized exchange platforms (DEXs) and aggregators, are anticipated to be accessible on Ink at its launch next year. Looking ahead, he envisions that the blockchain will evolve into a hub for a wider variety of intricate applications in various industries, encompassing real-world assets (RWAs) and sophisticated lending systems.
No Native Token for Ink
Koller, speaking to Bloomberg, revealed that the decentralized protocol they are working on will not launch its own cryptocurrency like other blockchain systems such as Bitcoin, Ethereum’s Polygon, Optimism, and BNB Chain.
As he explained, Kraken intends to channel the power derived from holding a token towards enhancing the protocol’s capabilities. This will make using DeFi for earning yield and other purposes more affordable and user-friendly.
The crypto exchange will function as the network’s transaction coordinator, initially earning income by arranging and overseeing transactions within the network. Over time, this task will be passed on to other entities as the network becomes decentralized. This method was previously employed by Kraken, mimicking Coinbase, which made $53 million through its Base protocol by serving as a transaction coordinator.
According to Koller’s revelation, approximately 40 people are currently working at Kraken for the project Ink. The company is also arranging a sequence of gatherings aimed at enticing more programmers to create on the platform. One such event for developers, called Devcon, is scheduled to take place in Thailand this November.
Kraken Expands Globally Amid Legal Challenges
Kraken’s forthcoming blockchain launch coincides with the company’s strategic growth spree, where it aims to broaden its array of products. Notably, the trading platform has recently purchased a Dutch brokerage firm to strengthen its influence in Europe. Now, under the banner of Coin Meester (BCM), Kraken will operate as a licensed exchange within this region.
In some areas such as the U.S., Kraken has faced legal hurdles, but it has consistently secured regulatory approval in various other global locations. Established in San Francisco in 2011, this company maintains operations not only in France but also in Poland, functioning under the designation of a registered virtual asset service provider (VASP).
In early 2024, Bloomberg reported that Kraken was considering going public.
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2024-10-24 19:28