Global crypto exchange OKX has announced its partnership with software solution provider Polygon Labs to launch the testnet of X1, a newly established layer-2 network powered by zero-knowledge technology.
OKX is the next name that joins the layer-2 landscape after Coinbase’s launch of Base.
Built on the Polygon Chain Development Kit (CDK), X1 unlocks access to a wide range of dApps, tools, and resources from both ecosystems. EVM-based DApps can be easily deployed on the network thanks to its EVM compatibility.
The Next Big L2?
Introduced in August, Polygon CDK is an open-source and modular framework designed to simplify the development and deployment of Ethereum Layer 2 (L2) blockchain networks.
It provides developers with a comprehensive toolkit to customize and optimize their layer-2 chains, addressing the scalability and cost limitations of the main Ethereum blockchain.
For performance and security, X1 utilizes ZK proofs, which makes it highly secure and scalable while also reducing transaction costs. Moreover, X1 will use OKB, OKX’s platform token, as its native token to pay gas fees on the network.
OKX also emphasized its involvement in the development of Polygon CDK as part of the collaboration. “OKX will become a core contributor to Polygon CDK, and will invest substantial engineering resources to enhance the technology stack for Ethereum scaling solutions,” the firm said in an article.
X1 aims to enable builders and users across OKX, Polygon, and Ethereum communities to seamlessly participate in a global on-chain ecosystem.
Jason Lau, Chief Innovation Officer at OKX, said that X1 is a powerful and important tool that will help OKX and Polygon Labs accelerate Web3 adoption.
With its high scalability, enhanced accessibility, and interoperability, X1 is perfect for builders looking to create consumer-centric, user-friendly applications.
Sandeep Nailwal, co-founder of Polygon, said that Polygon CDK provides builders with developer-friendly tools to build scalable and cost-effective blockchain solutions. Its modularity, ZK-proof support, and ease of use have made it a popular choice for creating layer-2 chains.
Will Kraken Follow Footsteps?
In great efforts to address Ethereum’s shortcomings in scaling, blockchain projects tend to diverge into two main approaches: either directly competing with Ethereum, as exemplified by Solana and Cardano, or developing layer-2 solutions.
Layer-2 solutions play a crucial role in addressing Ethereum’s scalability and cost issues, while maintaining security, privacy, and interoperability. They provide a promising path towards achieving broader adoption of Ethereum and enabling a wider range of applications to run on the blockchain.
Over the past few months, layer-2 solutions have generated significant buzz within the crypto sector, with dominant players such as Arbitrum, Optimism, and Scroll. has intensified rapidly, with established names like Coinbase, OKX, and Kraken showing their interest in entering the fray.
OKX’s tesnet launch of layer-2 scaling solution was made following the footsteps of its major rival, Coinbase Global Inc which launched Base in August. Built on OP Stack, Base is designed to address the scalability and cost issues of Ethereum by processing transactions off of the main Ethereum blockchain.
Kraken may soon introduce its own layer-2 blockchain. The firm is reportedly considering several industry players, including Polygon Labs, Nil Foundation, and Matter Labs for its potential network.
The idea also received support from Cardano’s founder Charles Hoskinson. Hoskinson proposed to support Kraken’s layer-2 scaling platform.
Whether or not Kraken will actually build a layer-2 network is still up in the air, but it is definitely a possibility.
The company has not made any announcements about it yet, but they are always looking for new ways to improve their products and services. A layer-2 network would be a great way to do that and it would be a good move for the company.