OKX cryptocurrency exchange has launched an in-house Ethereum layer-2 network to offer reduced transaction fees and seamless functionality.
On April 15, OKX introduced the public mainnet of X Layer, its network powered by zero-knowledge proof technology. Constructed utilizing Polygon’s chain development kit (CDK), the network leverages the Aggregation Layer of the Ethereum scaling protocol to facilitate shared state and liquidity across multiple blockchain networks.
In its announcement, X Layer promises to facilitate transactions with on-chain applications at a reduced cost and in a shorter time, according to Cointelegraph. The network employs ZK-proofs, a technology that serves as the foundation for numerous Ethereum layer-2 networks to enhance scalability and security.
EVM compatibility with X Layer enables developers to migrate or establish decentralized applications (DApps) based on Ethereum without rewriting the underlying code.
According to a statement by OKX chief marketing officer Haider Rafique, X Layer and other layer-2 networks will soon form an essential component of the Web3 ecosystem’s interconnected infrastructure.
“We are constructing an ecosystem with maximum interoperability and seamlessness.” Rafique stated, “We believe X Layer has boundless potential due to the strength of our community and its connectivity with other Ethereum-based networks.”
In November 2023, OKX introduced the mainnet beta of X Layer, which enticed over fifty Web3 DApps to migrate to the testnet. DApps such as Graph, Curve, LayerZero, QuickSwap, Galaxy, and Timeswap are reportedly undergoing deployment on OKX’s proprietary layer-2 network.
X Layer will allow OKX users to transmit assets, deposit and withdraw cryptocurrencies on OKX, and access nearly two hundred decentralized applications that support smart contracts, token swaps, and staking. Utilized to pay gas fees on the network, OKX’s native OKB token functions as the X Layer’s native token.
Polygon CDK is claimed to offer reciprocal advantages for chains such as OKX, X Layer, and those linked to Polygon’s AggLayer. Using the AggLayer, the X Layer effectively establishes connections with other chains constructed on Polygon CDK, thereby facilitating the transfer of liquidity between said chains.
Marc Boiron, chief executive officer of Polygon, asserts that this establishes a network of interconnected liquidity across various blockchain protocols.
“By bridging the fragmentation of liquidity and users across chains on the AggLayer, the X Layer’s connection to the AggLayer enables all nodes to grow in tandem.” “Onboarding to X Layer and all other chains connected to the AggLayer is now hassle-free for OKX’s fifty million users.”
The investment management firm VanEck projects that the market capitalization of Ethereum layer-2 networks could surpass $1 trillion by 2030. These networks have become indispensable to Ethereum’s scalability, enabling decentralized, secure, low-cost transactions and applications.
