Crypto

New Blockchain From Kraken Expected To Debut In Early 2025

Kraken, a leading US-based cryptocurrency exchange, is preparing to make waves in the blockchain industry with the launch of its proprietary platform, Ink. Ranked sixth in trading volume globally, Kraken’s new blockchain is poised to launch in early 2025, offering a novel approach to decentralized applications (dApps). This initiative will empower users to trade, borrow, and lend tokens seamlessly, eliminating the need for intermediaries.

Unveiling Kraken’s Vision for the Ink Blockchain

In a recent Bloomberg report, it was revealed that Ink will harness technology akin to Coinbase’s Base, a platform that has swiftly become one of the top decentralized finance (DeFi) networks since its inception over a year ago. Andrew Koller, the visionary behind Ink, announced that a testnet is slated for release later this year. This will provide developers with an invaluable opportunity to experiment with applications before the blockchain becomes accessible to both retail and institutional users in the first quarter of 2025.

Built upon Optimism’s Superchain, Ink is crafted to enhance user interaction with premier DeFi applications, protocols, and communities. As articulated in a company blog post, the blockchain will integrate seamlessly with the broader Ethereum ecosystem, leveraging its security while participating in the Superchain—a cohesive network of blockchains adhering to shared security and governance standards.

A Unique Proposition in the Blockchain Landscape

Koller emphasized Ink’s distinctiveness as the sole blockchain backed by a major Western exchange with a dedication to creating an optimal DeFi experience. The platform aspires to cultivate a “capital-efficient” ecosystem, prioritizing community involvement and innovation, ensuring that DeFi’s advantages are available to all users.

The trend of launching proprietary blockchains among crypto exchanges is on the rise, with many witnessing significant growth and revenue from such ventures. Notable exemplars include Binance’s BNB Chain and Coinbase’s Base, which have successfully propelled user engagement and transaction volume.

Advancing Decentralized Finance: Ink’s Support for RWAs and Lending

As Ink prepares for its debut, it is anticipated to host an array of over a dozen applications, including decentralized exchanges and aggregators. Koller envisions the blockchain as a pivotal player in supporting the real-world assets (RWAs) sector and sophisticated lending applications.

Initially, Kraken will assume the role of the chain’s sequencer, responsible for managing and organizing transactions to generate revenue. Koller, however, noted that this role is set to become decentralized over time, allowing multiple parties to share these responsibilities.

Currently, approximately 40 team members are dedicated to the development of Ink, with Kraken planning a series of events for developers. This includes participation in Devcon, set to take place in Thailand this November.

Kraken’s Strategic Expansion Amid Regulatory Challenges

Since its founding in 2011 in San Francisco, Kraken has been broadening its product offerings, even considering the prospect of an initial public offering (IPO). However, the exchange’s future trajectory may be influenced by impending changes in US cryptocurrency regulations, particularly with the upcoming elections.

Kraken faced regulatory scrutiny last year when the US Securities and Exchange Commission (SEC) charged it with operating as an unregistered broker. In February 2023, the exchange resolved separate charges linked to its staking services.

As the cryptocurrency landscape evolves, Kraken’s strategic initiatives, including the launch of Ink, position it at the forefront of innovation, paving the way for a decentralized financial ecosystem that is both inclusive and efficient.

Emma Horvath

After graduating Communication and Media Studies MA in Eötvös Loránd University, Emma started to realize that her childhood dream as a creative news reporter committed to find dynamic journalism stories. I'm a passionate journalist with a keen interest in the fast-evolving world of cryptocurrencies. I've been reporting on the latest developments in the crypto industry for several years now, covering breaking news and providing insights on how the market is trending. I'm adept at analyzing daily market movements, researching ICOs, and keeping track of the latest innovations in blockchain technology. My expertise in the space makes her a trusted voice in the crypto community. Whether it's the latest Bitcoin price movements or the launch of a new DeFi platform, I am always at the forefront, bringing her readers the most up-to-date and informative news.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button