U.S. compliance exchange Kraken launches its own L2: Ink, following Coinbase to join Superchain.

The second ace of the U.S. compliant exchange, Kraken, has followed in the footsteps of the leading U.S. exchange, Coinbase, by launching its Layer 2 solution, Ink. It is expected to go live on the testnet in two weeks. Ink has stated that it is dedicated to eliminating barriers to entry into DeFi and creating a limitless financial ecosystem that is easy for everyone to use.

Kraken Launches Layer 2 Solution Ink

Kraken has introduced its on-chain L2 solution called Ink, built on the Optimism Superchain. This move signifies Kraken's entry into the decentralized ecosystem, following the trend of other centralized exchanges gradually establishing blockchain-based solutions.

Ink is an internal business unit of Kraken, aiming to transition Kraken's core functions, including the exchange, wallet, identity verification, and KYC/AML processes, onto the blockchain. The project was initiated over a year ago, went through experimental and incubation phases, and eventually partnered with Optimism.

The goal is to create an on-chain user-friendly experience similar to Kraken's centralized platform, simplifying processes in decentralized finance (DeFi) such as cross-chain bridging and multi-signature approvals, ensuring a seamless and intuitive operation for users of all experience levels.

Technical Details of Ink

Ink is built on op stack to ensure compatibility with Optimism Superchain. The team plans to achieve sub-second block times, support smart wallets, and enable cross-chain interactions. Ink will be integrated into Kraken's existing wallet to enhance its on-chain capabilities.

Collaboration between Ink and Kraken's Business

While Ink operates as an independent entity, it will closely collaborate with Kraken's existing exchange and wallet. The goal is to gradually integrate all of Kraken's services onto the blockchain to achieve a comprehensive on-chain experience.

The primary objective of Ink is to drive user adoption and create an active on-chain ecosystem. Key performance indicators include the number of trading users and the growth of DeFi applications built on Ink. The team also plans to collaborate with projects like Aave and Infinix to enhance the DeFi experience.

Reasons for Ink Choosing Optimism Superchain

Kraken chose Optimism Superchain for its established roadmap for interoperability, existing community, and the development ease of op stack. The standardized approach of Superchain aligns with Kraken's vision for a seamless integrated on-chain experience.

Ink's Path to Decentralization

Kraken plans to gradually achieve full decentralization with Ink, including the sequencer. While a specific timeline has not been determined, the ultimate goal is to move towards the second phase of decentralization and ultimately eliminate reliance on a single operator.

How Does Ink Improve Gas Performance to Giga Gas?

The team is collaborating with Gelato to optimize Gas performance, aiming to reach the level of Giga Gas. They are working on infrastructure improvements and exploring various Gas optimization strategies.

Optimism Superchain's Role in Reducing Fragmentation

Optimism's Superchain aims to provide standardized infrastructure and upgrade mechanisms to address fragmentation issues in the Layer 2 ecosystem, allowing developers and users to focus on building and using applications without worrying about technical complexities.

The roadmap of Superchain includes reducing fragmentation and creating a unified user experience. The team emphasizes the importance of open-source development and community collaboration. While there is no specific timeline, they are committed to creating a truly seamless user experience to attract more participants to the decentralized ecosystem.

How to Join Ink? Opportunities at DevCon7 and Community Events

If you are a developer and are ready to participate in DevCon7, consider joining Ink's inaugural community event! This is an opportunity to meet with the team, partners such as Optimism, and earn OG rewards. Become one of the first members to join the Ink community More event details.