Table of contents
- What is INK Layer 2
- Main features of INK Layer 2
- Why is INK Layer 2 important?
- How does INK Layer-2 Impact Users?
- How To Get Started With INK Layer-2
In the continuously evolving world of crypto, innovation never rests. Kraken has launched INK Layer 2 on the Ethereum mainnet. Kraken is a leading Cryptocurrency exchange headquartered in San Francisco. It is one of the oldest and largest exchanges in the world and facilitates trading in various cryptocurrencies. It ranks among the top exchanges by trading volume and has officially launched its Layer-2 blockchain, INK, on the Ethereum mainnet. The team had originally planned to release INK in early 2025, so the launch is well ahead of their schedule. In this article, let us explore what INK Layer 2 is and why it is important.
What is INK Layer 2?
INK Layer-2 is Kraken’s proprietary scalability solution built on Ethereum’s base layer. As Ethereum continues to be the backbone of DeFi and decentralized applications (dApps), it faces challenges like high transaction fees (gas fee) and network congestion. Layer-2 solutions, like INK, aim to solve these challenges by operating on top of Ethereum’s mainnet. This allows faster and cheaper transactions without sacrificing security. INK is based on the OP stack and uses a rollup technology, grouping multiple transactions into one and submitting them to the main Ethereum blockchain as a single transaction. Developers can build their rollups using Optimism’s technology.
Key features of INK Layer-2
- INK is built on Optimism’s OP Stack, a modular framework designed to improve Ethereum’s efficiency. It uses optimistic rollups, which allow for off-chain transaction processing while maintaining minimal on-chain validation, which improves speed and reduces costs.
- The launch was supported by a grant of 25 million OP tokens from Optimism, which is valued at around $58 million.
- INK has launched with many popular partners in the decentralized finance (DeFi) space. Some of them are: Curve (decentralized exchange focused on stablecoin trading), Frax (stablecoin platform), Layerzero (interoperability between blockchains), and Gelato (infrastructure support for automated smart contracts).
- Transactions on INK Layer-2 are confirmed almost instantly, a big improvement over Ethereum’s confirmation times which are sometimes sluggish.
- INK improves Ethereum’s transaction capacity, allowing thousands of transactions per second. This contrasts with Ethereum’s base layer, which processes about 15-30 transactions per second.
- INK is fully compatible with existing Ethereum dApps, wallets, and tools. Developers and users don’t need to learn a new system or migrate their assets manually.
Why is INK Layer 2 Important?
Ethereum’s increase in popularity has led to some challenges. During peak times, users face huge gas fees and slow transaction times. These issues slow down Ethereum’s usability, especially for small transactions or new DeFi users. INK Layer-2 poses a solution by offloading much of the network’s activity to its scalable infrastructure. Lower fees and faster transactions will also drive wider adoption of Ethereum-based apps.
This is especially useful for use cases like gaming, NFTs, and micropayments, where high costs and delays are unacceptable. By launching INK, Kraken positions itself not just as an exchange, but as an innovator in blockchain technology. This will attract more users, especially those who are frustrated with Ethereum’s current limitations.
How Does INK Layer-2 Impact, Users?
Users can send ETH or interact with dApps at a fraction of the cost. DeFi users can execute trades and stake tokens with minimal fees, helping them get more returns. Reduced costs encourage higher participation, which therefore improves liquidity across DeFi platforms. Users can now use SuperchainERC20 to easily move tokens from the Superchain ecosystem to INK, They can use and deploy assets with launch partners in different app types, including bridge, lending, DEX trading, liquid staking, and more.
Developers, on the other hand, can deploy existing Ethereum dApps on INK without major modifications. INK also allows developers to build applications that handle large user bases without worrying about congestion. Minting NFTs on INK costs much less than on the Ethereum mainnet. Even buying, selling, or transferring NFTs becomes faster and more cost-effective.
How Users Can Get Started With INK Layer-2
- Begin by connecting your crypto wallet to INK. Most Ethereum-compatible wallets, such as MetaMask, support Layer 2 solutions. Add the INK network to your wallet settings.
- Use Kraken’s bridging tools to move your ETH or tokens from the Ethereum mainnet to INK Layer 2.
- Once your assets are on INK, you can interact with dApps, send tokens, or trade with lower fees and faster speeds.
Final thoughts
INK Layer 2 is a major effort to make Ethereum more scalable and user-friendly. As Ethereum continues to dominate the blockchain space, the need for efficient scalability solutions will only increase. The adoption of Layer 2 solutions like INK will depend on user education and developer support. INK’s developer discord community has already exceeded 100,000 members. INK is also moving toward Stage 1 decentralization to improve accountability in 2025. As Kraken continues to innovate and expand its ecosystem, the launch of INK could mark a new chapter in Ethereum’s journey.