The Kraken Armor is a full suit of armor of magical or at least very technologically advanced nature, that covers the wearer of a helmet, granting him enhanced powers.
The Kraken alters the appearance and voice of the wearer to protect his identity. It also apparently enhances the wearer's strength and durability, enables him to transport himself and several across inter-continental distances (perhaps via accessing other technology), grants him short-range energy projection, and presumably other abilities as well. The helmet may also affect the mind of the wearer, as Jake Fury described feeling like he was "slipping into a new persona - a new face, a new voice... and the vision to see the world in a new light." The helmet also protects from Gorgon's stone gaze, though that may have just been by dint of preventing eye contact.