Kraken’s Layer 2 Blockchain technology powers Ethereum’s scaling

• Toner, the second layer solution developed on Optimism Superchain, is now available; L2’s mission is to bridge the gap between users and developers, thus inventing the future of DeFi.
• In October, Kraken announced that Ink would be available to retail and enterprise users at launch, with apps accessible via Kraken’s Web3 wallet, said Andrew Kohler, founder of Ink.

Kraken, a US-based cryptocurrency exchange, has officially launched its second layer blockchain network, Ink, on the Ethereum mainnet ahead of its native network. Planned release in the first quarter of 2025. After its unveiling in October, the developer community on Ink’s Discord saw a surge of over 100,000 members. Nah Testnet phaseInk processed more than 8.17 million transactions and attracted more than 1.22 million addresses.

Additionally, around 90,600 tokens have been deployed on the protocol, with more than a dozen infrastructure partners, including LayerZero, Owlto Finance, and OKX Wallet, already integrated. These collaborations reflect Ink’s commitment to addressing a wide range of DeFi needs while prioritizing user experience.

Key insights into Kraken’s second layer ink solution

With the network now live, Ink is progressing towards the first phase of decentralization, and is set to introduce permissionless bug proofs aimed at promoting accountability by January 2025. Commenting on the launch, Andrew Kohler, Ink’s founder, expressed his excitement, saying:

Today is just the beginning for Ink, and now our boldest work begins: growing Ink. We push the boundaries of cross-chain experiences to open up new applications and opportunities for creators and users alike, layering privacy, security, and user experience improvements on top of deep liquidity.

according to Ink report Kraken plans to implement a permissionless error-proofing system on Ink, enabling users to challenge potentially invalid transactions. This feature will enhance accountability and enhance security. Unlike traditional systems that rely on individual supervision, permissionless and proof-of-stake frameworks are rooted in cryptographic principles and economic incentives. This approach greatly enhances the system’s transparency and resilience against malicious activities.

Ink Layer-2 leverages Optimism’s OP Stack and uses optimistic stacks to improve transaction speeds and reduce fees. In recognition of its decision to build on the Optimism ecosystem, Kraken received a large grant of 25 million OP tokens, valued at approximately $58 million. OP Stack has gained traction and is currently running around 43 live series. When compared to other Ethereum scaling solutions like Arbitrum and Polygon, each has its own unique advantages and disadvantages.

Last month, Kraken faced challenges, including an $8 million fine in Australia for regulatory violations by Bit Trade related to its margin extension product, as well as the closure of its NFT market just one year after its launch. In contrast, Enck seems to have a positive outlook.

Meanwhile, Optimism has faced difficulties with price fluctuations in its OP token. However, it has recently seen a notable increase in market activity, with trading volume reaching $738,607,619 over the past 24 hours, representing a rise of 60.50%. Despite this, the current OP price is still 55.75% lower than the all-time high of $4.84, recorded on March 6, 2024. The price is down 13.25% in the past 7 days, and each unit is currently Trading at $2.15.

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