December 19, 2024
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BTC traded as low as USD ~98,800 yesterday on Bitfinex. BTC is the only asset that is up over the past 7 days among the Top 20 coins.
According to Kraken, Ink was launched ahead of schedule following ‘a successful period of testnet development.’ Users are now able to deploy assets onto Ink via SuperchainERC20, a mechanism for moving tokens across Optimism’s Superchain ecosystem.
Kraken’s Ink is an Optimism Superchain. It is offered by Optimism, which essentially allows actors to stand up their own Ethereum layer-2 networks. Optimism envisions the Superchain ecosystem to eventually resemble a network of networks within the broader Ethereum ecosystem.
Kraken now joins fellow exchanges Coinbase (NASDAQ: COIN), which launched the Ethereum layer-2 network Base in August 2023, and Binance, which launched Binance Smart Chain in 2020, in operating its own blockchain network. Base is also an Optimism Superchain while Binance’s network is essentially an Ethereum fork rather than a layer-2. Uniswap’s planned Unichain, a standalone network for the exchange, is also being launched as an Optimism Superchain. This summer, Sony Block Solutions Labs, a joint project between Sony Group and Singapore-based Startale Labs, revealed it plans to launch its own Ethereum layer-2 network, also using Optimism’s Superchain model.
Yesterday, Bloomberg reported that Deutsche Bank (ETR: DBK) is planning to launch its own Ethereum layer-2 network. This layer-2 aims to address some of the issues institutions may have while operating on Ethereum according to Boon-Hiong Chan, Deutsche Bank’s Asia-Pacific industry applied innovation lead. According to Chan, these include uncertainties about ‘who exactly is validating the transactions,’ the possibility that transaction fees might go to sanctioned parties, and the danger of an unexpected hard fork that could fundamentally change the digital ledger.
Takeaway:Yesterday we wrote that the Ethereum ecosystem is committed to its layered approach to scaling. The long-term consequences of such a move remain to be seen for the network. On one hand, layer-2s allow for the development of highly specialized networks to support specific use-cases and requirements. On the other hand, layer-2s are taking fees away from the main network. Conceivably, the interests of layer-2s could begin to diverge from the Ethereum community, leading to the ‘secession’ of networks. Layer-2s also increase the complexity of Ethereum’s frequent network upgrades, requiring many diverse actors to coordinate and sync software. Ethereum’s technical roadmap remains one of experimentation in real-time with unclear long-term practical effects.
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