Add to/Remove from Watchlist
Add to Watchlist
Position added successfully to:
Please name your holdings portfolio
Create New Watchlist
Create a new holdings portfolio
+ Add another position
NEW YORK – Cryptocurrency exchange OKX has announced the rollout of its X1 layer 2 network testnet, a move that marks a significant step in the company’s strategy to foster mass adoption of web3 technologies. Developed in partnership with Polygon Labs, the testnet utilizes cutting-edge zero-knowledge technology to bolster security and improve cost efficiency.
The X1 testnet is designed to enhance interoperability within the web3 ecosystem, offering a platform for developers to create consumer-centric applications. The initiative is part of OKX’s broader effort to position itself as a developer-first platform, bridging its user base of over 50 million with Ethereum communities. By integrating transaction fees payable with their native OKB token, OKX is also contributing as a primary member to Polygon Labs’ Chain Development Kit (CDK).
Jason Lau, Chief Innovation Officer at OKX, emphasized the importance of scalability and cross-network operability in attracting developers to the X1 platform. He pointed out that these features are crucial for building a robust infrastructure capable of supporting the next generation of web3 applications.
The launch arrives on the heels of Coinbase (NASDAQ:COIN)’s Optimism-based layer 2 network introduced in August and sets the stage for other centralized exchanges like Kraken to potentially unveil similar developments. This trend underscores a growing interest among exchanges in proprietary layer 2 solutions aimed at broadening their user base beyond crypto enthusiasts and exploring new revenue opportunities through decentralized application (dApp) integration and transactional services.
In addition to the testnet debut, OKX has integrated its wallet with the X1 network, employing Polygon’s CDK and its native network to push forward interoperability and development. The wallet upgrade includes Multi-Party Computation (MPC) technology for enhanced security and streamlined recovery processes while introducing account abstraction capabilities that allow for multi-blockchain transactions using stablecoins such as USDC or USDT.
The X1 testnet supports existing Ethereum Virtual Machine (EVM) contracts and developer tools without requiring any code changes, ensuring full compatibility with Ethereum. Users will benefit from smooth asset transfers between the OKX main network and the X1 layer via OKB, which serves as the native token for gas payments on the new platform.
OKX’s launch of the X1 layer 2 network testnet is slated for a Q1 2024 mainnet debut, signaling the exchange’s commitment to leading innovation in Web3 technology. This strategic move aligns with their global brand campaign that promotes self-managed technology solutions as part of a new paradigm shift within the digital landscape.