Cryptocurrency exchange Kraken has neither confirmed nor rebutted speculation about its possible development of a layer-2 network, similar to the Base network launched by its rival Coinbase earlier this year.
Sparking these rumors were reports from unnamed insiders and a Kraken job listing for a senior cryptography engineer, tasked with the creation and implementation of cryptographic protocols and “layer-2 solutions.”
The job advertisement also indicated Kraken’s recent initiatives to explore the incorporation of additional protocols and decentralized applications within its cryptocurrency platform. The listing expressed the company’s keen interest in layer-2 protocols.
When approached by Cointelegraph for more details, Kraken did not verify any ongoing work on a layer-2 platform that might compete with Base or other layer-2 entities within the cryptocurrency domain. A Kraken representative stated, “We continuously strive to identify and address new challenges and prospects in the industry. At this moment, we have no further details to divulge.”
The community has had mixed reactions to these developments, with some voices on social media advocating for Kraken’s venture into layer-2 solutions, while others oppose it. One user, previously active on Twitter, suggested that layer-2 solutions are unnecessary due to the existence of scalable layer-1 networks and remarked on the current abundance of layer-2 networks causing liquidity fragmentation.
Coinbase, a key player in the market and a Kraken competitor, launched its layer-2 network known as Base. This network was officially made available to the public on August 9, following an initial phase where only developers had access.
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