What is Karak? Guide to joining Restaking

In the dynamic cryptocurrency market with countless new projects emerging, Karak stands out as a promising restaking protocol, promising attractive investment opportunities for the community. But what is Karak? This article provides a comprehensive overview of it, from its operating mechanism and benefits to a guide on how to participate in restaking and its future potential.

Table of Contents

What is Karak?

The remarkable growth of decentralized applications (dApps) on blockchain platforms like Ethereum has posed significant challenges in terms of scalability and transaction costs. Network congestion and high gas fees have hindered the growth of the DeFi ecosystem. In this context, Layer-2 solutions have emerged as a “savior” to address these issues.

Karak is one of the most promising Layer-2 solutions designed to optimize performance and expand blockchain capabilities. So, what exactly is Karak?

It is a Layer-2 blockchain platform that utilizes Rollup technology, inheriting Ethereum’s security and leveraging a Modular data availability network. This allows Karak to process a large number of transactions at high speed and significantly lower costs compared to Ethereum.

Furthermore, Karak focuses on two key application areas: Restaking and AI.

Restaking: It enables users to maximize their digital assets by participating in restaking activities safely and efficiently.
AI: It provides an open and decentralized infrastructure for the development of AI applications, fostering innovation and creativity in this field.

Outstanding technology and features

Karak distinguishes itself from other Layer-2 solutions through its combination of advanced technologies and unique features, delivering superior performance, high security, and optimal user experience.

Rollup technology

Karak employs Rollup technology, a Layer-2 scaling method that “rolls” multiple transactions into a single transaction on the main blockchain (in this case, Ethereum).

Benefits of Rollup:

Reduced transaction fees: Due to the significantly reduced amount of data processed on the main network, transaction fees on Karak are much lower than on Ethereum.
Increased processing speed: Rollups allow this layer-2 solution to process large volumes of transactions at higher speeds, reducing network congestion.
Enhanced scalability: Rollup helps projects scale the system to meet the growing demands of DeFi applications.
Inheritance of Ethereum’s security: Projects maintains high security by relying on the Ethereum platform.

Modular data availability

This layer-2 solution applies Modular data availability, an advanced technique that allows separation of transaction data and state data.

Benefits of modular data availability:

Optimized network performance: Data separation helps reduce network load, increase processing speed, and decrease latency.
Reduced bandwidth and storage costs: Only necessary data is stored on the main network, saving bandwidth and storage costs.
Enhanced scalability: Modular data availability contributes to enhancing Karak’s scalability, enabling it to handle more transactions.

Modular security network

Is a pioneer japs layer-2 solution in deploying Modular security network at the network layer level.

Benefits of modular security network

Enhanced security: The Modular security network provides an additional layer of security, protecting users from attacks and risks.
Support for innovation: Developers can freely experiment and deploy new applications without worrying about security issues.
Building user trust: The Modular security network gives users peace of mind when interacting with applications on Karak.

Secure restaking

Karak introduces a secure restaking solution, allowing users to participate in staking and restaking without worrying about slashing risks.

Restaking mechanism: Users can “restake” their already staked tokens on another protocol to earn additional profits.
Slashing risk: In some cases, users may lose a portion of their staked tokens due to violating protocol rules.
Karak’s solution: It utilizes LST (Liquid Staking Token), LRT (Liquid Restaking Token), and AVS (Actively Validated Services) to mitigate slashing risks and protect users’ assets.

Decentralized AI

This project builds an open infrastructure that prioritizes censorship resistance, privacy, and verifiability for the development of decentralized AI.

Benefits of Decentralized AI

Censorship resistance: No individual or organization can control or manipulate AI data and algorithms.
Privacy protection: Personal data is protected and not shared without permission.
Verifiability: AI algorithms and results can be audited and verified transparently.
Enhanced innovation: Decentralized AI encourages collaboration and knowledge sharing, promoting the development of new AI applications.

Thanks to the combination of these outstanding technologies and features, Karak delivers a powerful, secure, and efficient Layer-2 platform that meets the growing needs of the blockchain industry.

Karak ecosystem

Although still in its early stages, the Karak ecosystem is gradually taking shape with important components.

Karak XP early experience program

Karak XP is a program to incentivize users to experience products and services on the Karak platform. By completing tasks such as converting assets from Ethereum to Karak, referring new users, and using protocols built on top of it (e.g. Subsea, Slashproof), users will receive XP points. These XP points can be used to participate in future airdrop programs of the project.

Potential projects

[Information about projects being built on Karak will be updated here when official information from the project is available.]

Development potential

Despite its infancy, the Karak ecosystem has the potential to grow strongly in the future. The combination of restaking and decentralized AI creates a unique platform with many potential applications in DeFi, GameFi, and Web3.

Development Roadmap and team

Currently, the project is still in its early stages of development, focusing on building core infrastructure and expanding the ecosystem.

[Detailed information about Karak’s development roadmap and team will be updated when official information from the project is available.]

Investors and partners

This project has attracted attention and investment from leading names in the blockchain and venture capital fields. This support not only provides strong financial resources but also affirms the project’s enormous potential, while opening up important strategic partnership opportunities.

Series a funding round

In the Series A funding round, Karak successfully raised $48 million, bringing the project’s valuation to over $1 billion. This funding round was led by Lightspeed Venture Partners, a renowned venture capital fund in Silicon Valley, with participation from many other major investors, including:

Mubadala capital: The asset management arm of Mubadala Investment Company, a global sovereign wealth fund based in Abu Dhabi with total assets under management of up to $280 billion.
Coinbase ventures: The venture capital arm of the cryptocurrency exchange Coinbase, focused on supporting potential blockchain projects.
Pantera capital: The first blockchain-focused investment fund in the United States, with experience investing in many successful projects in the cryptocurrency space.
Framework ventures: An investment fund focused on supporting projects building token-based networks and developing the DeFi ecosystem.
Bain capital ventures: One of the world’s leading private investment firms, with experience investing in various sectors, including technology and finance.
Digital currency group: A long-standing investment and operating group in the cryptocurrency industry, owning many subsidiaries operating in the blockchain field, including Grayscale Investments and CoinDesk.

Investors

In addition to venture capital funds, the project also receives support from renowned investors, including:

Naval ravikant: CEO and co-founder of AngelList, a platform connecting startups with investors. He is also an active angel investor, having invested in many successful technology companies such as Twitter, Uber, and Stack Overflow.
Noah jessop: Managing Partner at venture capital fund Founders Fund, previously invested in SpaceX, Airbnb, and Spotify.
Nikil viswanathan: Co-founder and CEO of Alchemy, a blockchain development platform.

Karak is a promising Layer-2 blockchain platform that offers optimal solutions to scalability and transaction cost issues. With a focus on secure restaking and decentralized AI, this project has the potential to revolutionize how we interact with blockchain and drive the development of next-generation DeFi and AI applications.

Although Karak’s ecosystem is still in its early stages, with support from the community and major investors, it is expected to become one of the leading Layer-2 projects in the future.

Blockchain Global Network hopes that the information we have shared above has helped you better understand “What is Karak?” before deciding to invest in this platform. We wish you success!