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Hoskinson Backs Kraken

Hoskinson Backs Kraken

Cardano founder Charles Hoskinson offers to support Kraken’s plans for a Blockchain network.

Hoskinson Backs Kraken. Hoskinson sent a public message to Kraken’s CEO to inform him that he would collaborate with him on this plan. Cardano and the exchange have been moving forward with their expansion and consolidation plans. Cardano co-founder and lead developer Charles Hoskinson offered support to U.S.-based international exchange Kraken in its plans to launch its second-layer Blockchain network, similar to Coinbase. The exchange has been in talks with Polygon, Matter Labs, and the Nil Foundation. Cardano announced a few days ago a strategic alliance with the Polkadot team.

Cardano is ready to back Kraken

The announcement by Hoskinson came in a message posted via his X (Twitter) account. He rightly cited CoinDesk’s report on Kraken’s plans, saying:

Hoskinson’s proposal comes amid the advances and alliances that Cardano signed recently. Particularly noteworthy is the strategic agreement they signed with the Polkadot team. They will create “partner chains,” a framework for the project with which it seeks to solve critical problems of existing modular Blockchain network solutions, such as interoperability, security, tokenomics, and blockchain.

At the time, Hoskinson assured that the new framework would offer new ways for developers and validators to use Cardano’s core strengths to build optimized partner chains. He announced this during the Cardano 2023 Summit held a few weeks ago.

“Partner chains will revolutionize how people launch and operate new blockchains by combining modular blockchain technology with Cardano’s proven security, liquidity, and reliability. Partner chains will realize these benefits without relying on any network or technology stack.”

Charles Hoskinson

Kraken plans for the creation of a proprietary network

As for Kraken, the U.S. exchange announced its plans for creating a Blockchain network last week. They want to follow in Coinbase’s footsteps with the design of Base. In a previously published report, a Kraken spokesperson confirmed the company’s plans to build its second-layer network. Kraken claims they are “always looking to identify and solve new industry challenges and opportunities.

Meanwhile, an anonymous source with knowledge of the case indicated that the company was in talks with several technology vendors, including Polygon, Matter Labs, and Nil Foundation. But beyond building a network for the exchange, Kraken has also been making significant efforts to consolidate its expansion plans inside and outside the U.S. Note that the company is contemplating launching its stock trading service as Kraken becomes a regulated bank in the United States.

What’s a blockchain’s second layer?

A second-layer blockchain is a protocol built on an existing blockchain. It enables additional functionalities and features. It tries to solve scalability issues and improve transaction speed on the network. By creating a second layer, developers can add new features and capabilities without affecting the underlying blockchain’s integrity or security. This approach is becoming increasingly popular as blockchain networks grow and require more complex use cases. Second-layer blockchains are also commonly used for creating decentralized applications (DApps) and smart contracts.

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