Cryptocurrency exchange OKX has entered the race of crypto exchanges developing their own Layer-2 networks by announcing the launch of its zkEVM (zero-knowledge Ethereum Virtual Machine) Layer-2 testnet.
Developed in partnership with blockchain developer Polygon Labs, the Ethereum Layer-2 network, named X1, employs zero-knowledge (ZK) proofs to facilitate swift and cost-effective transactions on a secure network compatible with Ethereum. This move marks OKX’s initial step into building and advancing its on-chain environment, with Jason Lau, Chief Innovation Officer at OKX, emphasizing X1’s scalability and accessibility for developers aiming to create consumer-friendly Web3 applications.
To navigate gas fees on the X1 network, OKX’s native token, OKB, will be utilized. OKB, a utility token, already facilitates trading fees on the exchange and participation in OKX’s Jumpstart token launch platform. X1 seeks to attract developers leveraging OKX’s substantial user base, with the exchange boasting over $12 billion in assets and more than 50 million active users.
As part of the collaboration, OKX will contribute engineering resources to enhance Polygon’s Chain Development Kit (CDK), enabling the construction of custom ZK-powered Layer-2 blockchains on Ethereum. This initiative aligns with a broader trend of crypto exchanges vying to provide proprietary Layer-2 solutions, with Coinbase and Kraken also making significant strides in this space.