In a strategic move that could shake up blockchain networks, Charles Hoskinson, founder of Cardano, expressed his interest in collaborating with Kraken, the cryptocurrency exchange in the United States, to develop a Layer-2 (Capa-2) network.
This proposal became public during a discussion on the X app (formerly Twitter) on November 12, where Hoskinson highlighted the value that such a partnership could bring to the advancement of blockchain technology.
— Charles Hoskinson (@IOHK_Charles) November 12, 2023
Layer-2 networks, by providing greater efficiency and speed to Layer-1 blockchains, are gaining ground due to their low transaction costs and the ability to improve transaction speed on major blockchains.
The growing competition among blockchain developers to be Kraken’s choice in implementing its Layer-2 network is shaping a scenario where these strategic collaborations become crucial.
Previously, Kraken had explored partnerships with developers like Polygon and Matter Labs in the search for Layer-2 solutions.
However, Hoskinson’s direct approach suggests a significant shift in this search and highlights the growing importance of these alliances in the ecosystem. In addition to Cardano’s specific interest in collaborating directly with Kraken.
Imagine @krakenfx benefitting from the most decentralized L1's security, taking advantage of all that #Cardano has built over the last 5 years while building your own L2. Not only that but you'll get the entire community behind you immediately. @jespow.
— $conrad (@conraddit) November 13, 2023
Potential Benefits of the Alliance Between Kraken and Cardano
Established companies in the field, such as Coinbase, set a successful precedent in the implementation of Layer-2 networks.
Coinbase’s Base network, built on the Optimism Stack, significantly improved performance and user experience for decentralized applications (DApps) based on Ethereum.
This initiative led Coinbase to secure a prominent position in the sector, with a Total Value Locked (TVL) of over $300 million, ranking it as the tenth most popular chain.
The potential collaboration between Cardano and Kraken could follow a similar path, allowing Kraken to make substantial strides in the Layer-2 network domain while highlighting Cardano’s innovative perspective on blockchain technology and digital finance.
These strategic collaborations between established companies become essential to drive technological advancements and shape the future of digital finance.
Hoskinson’s proposal to partner with Kraken in the development of the Layer-2 network represents the growing synergy between different entities in the blockchain space.
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