Kraken Launches Ethereum Rollup Blockchain Ink to Compete with Coinbase’s Base

Kraken Enters the Ethereum Rollup Space

Kraken, a major US-based cryptocurrency exchange, has announced the development of its own blockchain named Ink. This new blockchain will function as an Ethereum rollup, providing users with faster and more cost-effective transactions.

The Rise of On-chain Transactions

Ink aims to offer Kraken’s millions of customers the opportunity to engage in onchain transactions. This move signifies a shift towards more direct interaction with blockchain technology, as opposed to relying on centralized exchanges for cryptocurrency management.

Centralized Exchanges Embrace Crypto Principals

Despite the traditional reliance on centralized exchanges for crypto transactions, these platforms are increasingly positioning themselves as supporters of decentralized principles. By enabling self-custody wallets and blockchain access, exchanges like Kraken and Coinbase are bridging the gap between centralization and decentralization.

Ink Takes Inspiration from Coinbase’s Base

Following in the footsteps of Coinbase, Kraken’s Ink blockchain is developed using Optimism’s technology. This approach mirrors Coinbase’s success with Base, which has generated significant revenue for the exchange and established a strong presence in Ethereum’s DeFi ecosystem.

Optimism’s Growing Influence in the Ethereum Ecosystem

Optimism-powered rollups, including those from Sony, Uniswap, and World, are gaining traction within Ethereum. Optimism’s upcoming token standard aims to enhance interoperability among blockchain networks, a move that could further streamline interactions between platforms like Ink and other Optimism chains.

Future Plans for Ink

Kraken’s Ink blockchain is set to launch a test network later this year, with a full release on Ethereum planned for 2025. With over 10 million users worldwide, Kraken’s entry into the Ethereum rollup space is poised to significantly impact the cryptocurrency landscape.