Big cryptocurrency exchanges are playing a new game. They are now building their own blockchain networks. This move aims to make crypto trading faster and cheaper. Gate.io, a big name in the crypto world, is the latest to join this trend.
Gate.io just launched “Gate Layer.” This is a new network that sits on top of Ethereum. Think of it as a dedicated fast lane for transactions. It promises to cut down costs for users too. Gate.io sees Gate Layer as key to its “All in Web3” plan. The company wants to offer a much smoother and more affordable online experience.
Like some rivals, Gate.io is building its new network using a toolkit called OP Stack. This set of open-source parts comes from Optimism, another Ethereum-focused network. Gate Layer will work perfectly with Ethereum’s technical standards. It will also use GateChain for settling transactions. Gate.io’s own token, GT, will power this new system.
Dr. Han Lin, the CEO of Gate, explained the shift. He said Gate Layer completes their change from just a trading platform to a full Web3 system. This system will live entirely on the blockchain.
GT Token Fuels Gate Layer
Gate.io has big plans for its new blockchain. It will host advanced trading tools. These tools will offer lots of money available for trading, much like big exchanges. Gate Fun is another planned feature. It’s a simple tool for launching new tokens without complex coding. They also mentioned Meme Go, which tracks meme tokens across different networks in real time. These additions are all part of Gate’s Web3 push.
The team behind Gate Layer boasts impressive numbers. They say the network will handle over 5,700 transactions every second. New blocks will form in just one second. Transaction fees will be much lower compared to other similar networks. Users will also be able to move money easily. This includes transfers to the main Ethereum network and other L2s through LayerZero.
Gate.io is also updating its own GateToken (GT) to fit this vision. GT will be the only token used to pay for network fees on Gate Layer. The company also continues its “dual deflationary” plan. This means Gate.io regularly buys back GT tokens and removes them from circulation. They stated that over 60% of the GT supply has been burned so far. At the time of the original article, GT was trading at $15.90, showing a small dip that day. This information came from CoinGecko.
Gate Joins the L2 Race
Gate.io’s move is part of a growing trend. More and more companies want their own Layer 2 networks. Coinbase, a large U.S. crypto exchange, launched Base in August 2023. This brought its activity directly onto a blockchain. Other exchanges, like Kraken and the decentralized exchange Uniswap, have followed. They all chose Optimism’s OP Stack toolkit.
Gate was founded in 2013. It is currently the fifth largest crypto exchange based on daily trading volume, according to CoinGecko. This isn’t Gate’s first try at launching a blockchain. Back in 2019, they tried to create a chain. They raised $64 million for it in an initial exchange offering, but those plans never took off. This time, with Gate Layer, things appear to be different.
