Kraken Seeks Partner To Build Its Own Layer 2 Blockchain Network, Considers Utilizing Polygon

Kraken, one of the leading cryptocurrency exchanges in the United States, is reportedly looking to establish its own Layer 2 blockchain network, following the footsteps of its rival, Coinbase. The exchange is considering collaborating with blockchain developers, including Polygon, Matter Labs, and the Nil Foundation, to develop a solution for scaling. This decision comes after Coinbase successfully launched its own Layer 2 network earlier this year, using Optimism technology.

Layer 2 solutions are designed to enhance the scalability and efficiency of blockchain networks. They operate on top of existing blockchains, providing an additional layer of infrastructure that can handle a larger volume of transactions and reduce congestion. These solutions are particularly crucial for popular exchanges like Kraken and Coinbase, which experience high levels of trading activity and need to ensure that their platforms can handle the growing demand.

By partnering with blockchain developers such as Polygon, Matter Labs, and the Nil Foundation, Kraken aims to create its own Layer 2 blockchain network. These developers possess the expertise and technical knowledge required to build scalable solutions that can meet the specific requirements of Kraken's trading platform. Collaborating with established blockchain developers also enables Kraken to leverage their existing technologies and frameworks, reducing the time and resources required to develop their own Layer 2 network.

Polygon, formerly known as Matic Network, is a prominent Layer 2 scaling solution for Ethereum. It provides a framework for building and connecting Ethereum-compatible blockchains, offering faster and cheaper transactions compared to the main Ethereum network. Partnering with Polygon would allow Kraken to tap into their infrastructure and expertise, potentially accelerating the development process of their Layer 2 network.

Another potential partner for Kraken is Matter Labs, the team behind the development of zkSync. zkSync is a Layer 2 scaling solution that employs zero-knowledge proofs to enable scalable, low-cost transactions on Ethereum. By collaborating with Matter Labs, Kraken could benefit from zkSync's innovative technology, which could provide a competitive edge in the rapidly evolving cryptocurrency exchange market.

The Nil Foundation is an organization focused on the research and development of Layer 2 solutions. They have been actively contributing to the development of various Layer 2 technologies and protocols, including Optimistic Rollups. Partnering with the Nil Foundation would allow Kraken to leverage their expertise and gain insights from their research, enhancing the scalability and performance of their Layer 2 network.

Overall, Kraken's decision to create its own Layer 2 blockchain network is a strategic move to enhance the scalability and efficiency of its trading platform. By partnering with blockchain developers like Polygon, Matter Labs, and the Nil Foundation, Kraken aims to leverage their expertise and technologies to develop a scalable solution that can handle the increasing demand for cryptocurrency trading. This move follows the footsteps of Coinbase, demonstrating the importance of Layer 2 solutions for cryptocurrency exchanges in providing a seamless and efficient trading experience.