What is Kraken’s Ink blockchain?
Ink is a layer-2 bridge under development by Kraken with the goal of making decentralized finance (DeFi) more efficient by enhancing transaction speed, lowering costs and improving flexibility. The Ink Testnet will be launched during DevCon in Bangkok on Nov. 12-15, 2024, and the mainnet is scheduled for release in the first quarter of 2025.
Seamlessly integrating centralized and decentralized environments, Ink by Kraken provides users with all the necessary tools and services while mitigating common challenges associated with these environments. The solution operates on Ethereum as a layer-2 (L2) solution, easing the pressure on the layer-1 (L1) chain.
The term “L2 solutions” refers to protocols built on top of base blockchains, also called L1 blockchains, to improve their characteristics, such as scalability and privacy. These protocols take the processing of transactions from the L1 blockchain, using it solely for transaction settlement. Common L2 solutions include state channels, sidechains, optimistic rollups and zero-knowledge rollups.
Developed on Optimism’s open-source, MIT-licensed OP Stack codebase, Ink is integrated with the Ethereum ecosystem. Ink will be a component of the Optimism Superchain, a network of L2 blockchain networks that share a common development stack, security, bridging and communication layer.
Ink will enable you to use Ethereum’s tried-and-tested security while participating in a system that actively supports Ethereum’s scalability. The Optimism Superchain will facilitate interoperability throughout its ecosystem and beyond, allowing liquidity to easily move between the chains that make up the Superchain.
How is Ink different from other L2 solutions?
Ink will bridge the sometimes daunting world of DeFi and the familiar environment of centralized crypto exchanges. For beginners, it will make the process of “going onchain” much more approachable. By easing consumers into DeFi, it seeks to lessen the unease with which DeFi is frequently associated.
Ink, an exchange-backed blockchain designed for DeFi, aims to simplify user experience and expand access to decentralized finance. By offloading transaction processing from the main blockchain, Ink seeks to enhance efficiency and scalability within the DeFi ecosystem.
With Ink, Kraken hopes to bring institutional credibility into the decentralized space. This approach is more than just another L2 solution; it combines the advantages and disadvantages of centralized and decentralized systems. By eliminating or reducing the friction points that have made such transitions challenging, Ink may enable users to move easily between the two worlds.
Security is another parameter that sets Ink apart from other L2 bridges. Ink’s robust security standards are designed to lessen risks, which is crucial in the DeFi environment. As for the speed of forming blocks, Ink will offer one-second block times from day one and focus on bringing it down to sub-second blocks.
Did you know? In Q1 2024, daily active addresses in Optimism reached 89,000, a 23% increase from the previous quarter. Daily transactions in Optimism reached 470,000, which is a 39% jump from the previous quarter.
What makes interoperability a key feature of Ink?
Ink prioritizes cross-chain interoperability, enabling users to transfer assets seamlessly between different blockchains. This feature distinguishes Ink as a versatile platform within the DeFi ecosystem.
Built with the OP Stack, Ink benefits from Ethereum’s security while adding value to the Superchain’s network of L2 solutions. Optimism Superchain, working as a unified network of chains, boosts the performance of the whole Ethereum ecosystem, broadening the scope for decentralized applications (DApps) to operate efficiently.
Ink will enhance the performance of DApps and protocols on the Superchain by automating processes and streamlining workflows, enabling smoother transitions to onchain operations.
By facilitating cross-chain interoperability, Ink will offer users access to a wider range of DApps and resources across multiple networks.
Did you know? The Asia-Pacific region is witnessing the most rapid growth in the blockchain interoperability market. This surge is driven by the widespread adoption of blockchain technology, coupled with strong government support in countries like China, Japan and South Korea. The region is experiencing a remarkable compound annual growth rate (CAGR) of over 65%.
What will be the economic model of Ink?
Ink is a platform with a well-thought-out economic model. Kraken will launch it with a sequencer revenue model, a strategy that has already proven profitable in the case of Coinbase, according to Bloomberg.
With Ink, Kraken has calculatedly created a long-term economic model that fosters the ecosystem’s expansion. Kraken will act as Ink’s sequencer, meaning Kraken will be arranging transactions in a roll-up before sending them to Ethereum and earning revenue for the service. Coinbase, for example, generated $53 million in sequencer revenue with Base in just the second quarter of 2024.
Moreover, Ink isn’t starting alone; it starts with more than a dozen DApps, which will soon go live. These apps have been developed for sectors like advanced financing platforms and real-world assets.
How can you get started with Ink?
You can get involved with Ink by minting a commemorative NFT, attending DevJam in Bangkok, or engaging with the community on Discord and Telegram.
Here’s how you can dive into the Ink blockchain:
- Minting a commemorative NFT: Collaborate with Optimism to mint an exclusive NFT and become an early adopter.
- Attending Ink DevJam in Bangkok: Join the DevJam event at DevCon7 in Bangkok from Nov. 12-15, 2024.
- Engaging with the community: Connect with the Ink community on Discord and Telegram .
Did you know? As of Nov. 4, 2024, with a total value locked (TVL) of $2.43 billion, Base currently holds the largest market share among all L2 chains. The TVL of all L2 chains collectively amounts to 9.06 billion dollars.
How can you benefit from the launch of Ink as an end user?
Ink will provide developers an environment with tools, technical support and funding opportunities. It will enable users to integrate their blockchain projects with Ink. By utilizing aggregation, automation and abstraction techniques, Ink helps developers create user-centric experiences.
As an end user, you may prepare for potential airdrops in the future if a token for Ink is released. Joining the official Discord channel may be helpful in this regard. Ink has already created a faucet where you can get Ether (ETH).
With Ink, developers can create applications that help users access opportunities onchain. They can get into an ecosystem of other DeFi-focused builders, where they can leverage the communities and composability to bring their DeFi ideas to life.
If you are a developer, you can apply for the Ink Apprentice Dev Role by demonstrating your experience. This can be done by verifying that you have deployed a smart contract on one of these blockchains: Ethereum, Optimism, Base, Arbitrum, Polygon or BNB Chain.
Alternatively, you can qualify by having a GitHub account that is at least one year old. You can complete verification through the Guild’s website.