Cardano Founder Seeks Partnership with Kraken for Layer 2 Development
Charles Hoskinson, the founder of Cardano, has expressed his desire to work with Kraken, one of the world’s largest crypto exchanges, as the Layer 2 blockchain market gains momentum. Last week, Kraken announced its plans to build its own Layer 2 blockchain, although it has not yet decided on a network partner.
In response to this development, Hoskinson took to X (formerly Twitter) to express his interest in collaborating with the exchange. He tagged Kraken co-founder Jesse Powell and said, “I’m game if you are.” This move by Kraken comes in the wake of Coinbase launching its own Layer 2 network called Base, signaling increased competition among major exchanges in this space.
Building a Side Chain with Cardano
If Kraken partners with Cardano, they could potentially develop a side chain that runs parallel to the network. An example of this is Hydra developed by IOHK, which utilizes isomorphic state channels known as ‘heads’ to function as a Layer 2 network. This allows for faster speeds, lower fees, and better scalability and throughput.
Can Kraken Compete in the Layer 2 Blockchain Space?
The Layer 2 blockchain market is already saturated with established players such as Coinbase, Avalanche, Polygon, and Arbitrum. Despite this competition, Kraken’s strong reputation and trust score could position them well to compete in this space.
Hot Take: Exploring New Partnerships in the Crypto World
It’s clear that major players like Cardano and Kraken are looking to expand their presence in the Layer 2 blockchain market. By forging partnerships and exploring new opportunities for development, they aim to stay competitive and drive innovation in the crypto industry.
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