Seychelles-incorporated OKX Collaborates with Polygon Labs on X1 Layer-2 Network
OKX, one of the world’s largest cryptocurrency exchanges, has partnered with blockchain development firm Polygon Labs to introduce the testnet for its latest zero-knowledge layer-2 network, named “X1.”
Introducing “X1”
The announcement of X1 was made through a press release on Tuesday. This Ethereum-based ZK network is built using the Polygon Chain Development Kit (CDK), with OKX playing a crucial role as a core contributor to the CDK. OKX is investing substantial engineering resources to enhance the scalability of Ethereum through this solution.
The new network aims to strengthen the utility of OKX’s native token, OKB, which will be used for X1’s gas fees. Following the collapse of FTX, there has been increased scrutiny on the utility of exchange tokens, and OKB observed a 10% unit price increase on Tuesday, although the move has retraced downwards since then.
ZK Proof Technology
X1 utilizes ZK proofs, a method that allows one party to convince another of a claim’s truth without disclosing the details of the claim. This ensures high security and scalability while mitigating transaction costs. The network aligns seamlessly with Ethereum, facilitating the secure deployment of EVM-based dApps and connectivity with smart contracts, wallets, and tools. OKX emphasizes X1’s status as its new native network.
Jason Lau, Chief Innovation Officer of OKX, expressed optimism about X1, emphasizing its scalability and accessibility, particularly for developers constructing user-friendly Web3 applications while maintaining interoperability with other networks.
Collaboration with Polygon Labs
The collaboration with Polygon Labs is a significant milestone in the evolution of Polygon’s CDK, launched in August. CDK enables the development of layer-2 blockchains on Ethereum, emphasizing zero-knowledge proofs. Sandeep Nailwal, co-founder of Polygon, highlighted the importance of X1 adopting Polygon CDK technology, envisioning a future where CDK-deployed chains interoperate within a larger network of ZK-powered layer 2s in the Polygon CDK ecosystem.
Various Layer 2s, including Immutable zkEVM, IDEX, Palm Network, and Astar zkEVM, are currently in development using this technology.
Industry Trend
A trend is emerging among crypto exchange platforms involving the establishment of layer two networks. Earlier this year, U.S. crypto platform Coinbase introduced the Base network, an Ethereum layer-2 network. Kraken, another leading U.S.-based crypto platform, is reportedly seeking a development partner to build its own layer-2 blockchain network, considering collaboration with Polygon Labs, Matter Labs, or the Nil Foundation.
As the OKX-Polygon Labs collaboration progresses, the industry will closely observe how X1, with its innovative technology stack and seamless integration with Ethereum, contributes to broader Web3 development.
