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Cardano Layer 2 on Kraken? Charles Hoskinson Propositions Jesse Powell to Rival Coinbase

Last Updated November 13, 2023 3:25 PM
Josh Adams
Last Updated November 13, 2023 3:25 PM
Key Takeaways
  • Kraken has been looking to develop its own layer 2 blockchain.
  • Polygon and Matter Labs are already potential partners.
  • Now Charles Hoskinson has thrown his hat in the ring.

Cardano founder Charles Hoskinson recently made a bold proposition to Kraken CEO, Jesse Powell – partner up to build a Layer 2 blockchain network that could rival Coinbase’s Base Layer 2.

In a post  on X, Hoskinson directly reached out to Powell saying “I’m game if you are”, in reference to Kraken’s search for a blockchain partner. 

What Is Base?

Created by Coinbase, Base launched its testnet in February 2023 and mainnet in July 2023. It aims to provide developers with easy, low-cost access to Ethereum Layer 2. Base runs parallel to Ethereum, processing transactions off-chain before bundling and sending them to Layer 1. This saves on fees and congestion. It also uses rollups to further compress transactions.

Built on open-source OP Stack, Base closely mirrors Ethereum for easy migration, but it’s also customizable for developers, and a tight Coinbase integration creates an on-ramp for crypto newcomers. Key features include bridges to move assets between layers, oracles for real-world data, toolchains for coding, faucets for ecosystem funds, and more. These features help lower barriers to building dApps on Ethereum.

Unlike sidechains like Polygon, Base is a true Layer 2. Unlike Arbitrum, it uses Ethereum Virtual Machine (EVM) for faster speeds. 

Another Game-Changing Layer-2?

Any potential partnership between Hoskinson’s Cardano and Jesse Powell’s Kraken could be a big development in crypto. While Base took the crypto world by storm becoming the 10th most popular chain with over $300 million locked , there’s still room at the top. Kraken teaming with the dynamic Hoskinson and leveraging Cardano’s tech could, in theory, create the next viral Layer 2 network.

Yet Kraken has its pick of partners. Polygon, Matter Labs, and more have already thrown their hats in the ring. Competition is fierce, but Hoskinson just catapulted Cardano to the top of the pack. His bold, direct proposition shows he means business.

For Kraken, now is the time to expand into new markets and revenue streams. A Layer 2 could unlock this potential. Following Coinbase’s model, a Cardano-powered layer 2 could cement Kraken’s status as an innovation leader.

And for Cardano, it’s a chance to challenge Ethereum and showcase its capabilities. Hoskinson clearly sees Kraken’s attempt at a Layer 2 as the perfect stage. Their collaboration would also be a meeting of two of crypto’s biggest players.

Kraken is currently the third largest exchange  by trading volume, according to CoinMarketCap . ADA, Cardano’s native cryptocurrency, is currently the 8th-largest coin by market capitalization.

Kraken did not immediately respond to a request for comment.

The ball is now in Powell’s court. Will he take Hoskinson’s offer and gamble on Cardano? Or play it safer with another established player? One thing is clear – Hoskinson just shook up the race, and the crypto world is waiting eagerly to see how Powell responds.

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