Amid reports that Kraken plans to build a new layer-2 network, Cardano founder Charles Hoskinson has publicly shared his intent to collaborate with the exchange.
In the past week, reports emerged that the popular crypto exchange Kraken was considering building its own layer-2 network. Kraken reportedly wishes to take the same path as Coinbase, which has enjoyed success with the release of its Base network for decentralized applications (dApps.)
Kraken is still in the process of selecting a partner for the ambitious project, with Polygon, Matter Labs, and Nil Foundation all in the running. However, Cardano also wants to be in the mix and offer its layer-1 network as the primary blockchain on which Kraken builds its layer-2.
Cardano founder Charles Hoskinson made this intent known in a social media post where he reckoned that the blockchain network would be happy to provide a home to Kraken’s rumored layer-2. Additionally, the Cardano founder urged former Kraken CEO Jesse Powell to reach out privately to discuss such a possibility.
— Charles Hoskinson (@IOHK_Charles) November 12, 2023
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At the time of writing, there was no indication that Jesse Powell or anyone from Kraken had connected with Charles Hoskinson. Yet the Cardano founder’s offer has attracted the Cardano community’s interest, many of whom have offered to get behind Kraken if the exchange accepts Hoskinson’s offer.
Cardano Sees Rise in Developer and User Activity
The Cardano founder’s latest offer comes at a time when the blockchain is seeing increased developer and user activity. As recently reported by The Crypto Basic, Cardano leads the way for top blockchains by development activity, topping the likes of Ethereum, Aptos, and Polkadot.
At the same time, user activity on the network is on the rise, as indicated by the value of assets locked across Cardano-based decentralized finance (DeFi) protocols. Cardano’s TVL recently surpassed Bitcoin’s, setting a new high for the year.
Granted, securing a partnership deal with Kraken would further boost Cardano’s fortune. However, Ethereum-based solutions offer significant advantages as applications built on them are compatible with the Ethereum virtual machine (EVM). This means that dApps can easily be launched on the new chain, especially as Ethereum boasts a wider developer base than Cardano.
Nevertheless, many in the Cardano community will be keen to see whether Hoskinson’s attempt yields any fruit. Regardless of the outcome, though, Hoskinson’s approach may strengthen investor confidence that Cardano is ready to help companies build layer-2s, and it may only be a matter of time until major partners arrive on the scene.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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