OKX, a notable cryptocurrency exchange, has introduced a testnet for its forthcoming Ethereum layer 2 network, known as “X1,” as announced on November 14. This network, in its development phase, is harnessing the Polygon Chain Development Kit (CDK) and is set to employ zero-knowledge proofs for validating deposits and withdrawals across different layers.
Ranked as the sixth-largest centralized cryptocurrency exchange globally in terms of trading volume, OKX boasts a staggering daily trading volume exceeding $1.8 billion, according to data from CoinMarketCap. Its native token OKB presently holds a market capitalization surpassing $3.6 billion, placing it among the top 30 cryptocurrencies. The announcement highlighted that upon the mainnet version's launch, OKB will function as the native token for covering gas fees on this network.
The development of X1 is leveraging the Polygon CDK, which suggests potential integration into the wider Polygon ecosystem. This ecosystem encompasses various networks such as the Polygon zero-knowledge Ethereum VM, PoS, Near, Manta Pacific, among others. Moreover, OKX aims to play a significant role as a future core contributor to Polygon’s CDK software. The exchange commits to allocating considerable engineering resources towards fortifying Ethereum’s scaling solutions, as detailed in the announcement.
Jason Lau, OKX’s Chief Innovation Officer, emphasized that the newly introduced network, X1, is pivotal in their efforts to educate and attract users to the Web3 realm. Lau stressed the scalability and accessibility of this network, catering to developers aiming to create user-friendly and high-quality consumption within X1 Web3 applications, while ensuring compatibility with other networks and ecosystems.
Additionally, OKX stands as the initiator of OKT Chain, an Ethereum sidechain utilizing OKB as its native token. Notably, OKX joins other exchanges in crafting their networks, following in the footsteps of Binance's launch of BNB Chain in 2019 and Coinbase's introduction of its layer 2 “Base” network on August 9.
