- Kraken’s Ink aims to simplify DeFi, offering trading, lending without intermediaries.
- Ink leverages tech similar to Coinbase’s Base, focusing on ease-of-use and user experience.
- Kraken will initially serve as Ink’s sequencer, with plans for future decentralization.
Kraken has announced plans to launch its blockchain platform, Ink, early next year. This new decentralized ledger aims to facilitate trading, borrowing, and lending tokens without intermediaries, streamlining users’ access to decentralized finance (DeFi).
Ink, Kraken’s new blockchain, will leverage similar technology to Coinbase’s Base, which has emerged as one of the top DeFi platforms since its introduction more than a year ago.
Kraken’s approach to the blockchain will aim to simplify and enhance user interaction with decentralized applications (dApps). Unlike many other blockchains, Kraken does not plan to issue its own native token, focusing instead on the platform’s core functionality and user experience.
The blockchain ecosystem has grown strongly across major platforms like Binance’s BNB Chain and Coinbase’s Base. Coinbase reported a 300% increase in transactions on Base during the second quarter, spurred by the popularity of new decentralized applications and memecoin launches.
A key focus for Kraken’s Ink blockchain is to make the user experience intuitive, aiming to simplify the process of interacting with DeFi applications. This effort includes integrating the decentralized apps with the Kraken Wallet, offering what Kraken representatives describe as a seamless and “Apple-esque” interface.
The goal is to merge the centralized and decentralized ecosystems into one familiar, user-friendly platform on which users can easily participate in trading, earn yield, and use other DeFi services.
At launch, Kraken’s Ink blockchain will feature over a dozen dApps, including decentralized exchanges and aggregators. Over time, the blockchain may expand to host real-world assets and more complex decentralized lending applications, making it a versatile platform for various decentralized financial services.
Initially, Kraken will act as the sequencer for its Ink blockchain, managing and organizing transactions on the network, similar to what Coinbase currently does with Base. According to its shareholder letter, in the second quarter of 2023, Coinbase generated $53 million from its sequencer operations.
Kraken’s role as the chain’s sequencer will also be monetized but is expected to decentralize over time, with the function shared among multiple parties as the ecosystem evolves.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
