OKX, one of the leading cryptocurrency exchanges, has announced the launch of its X1 layer 2 network testnet. The X1 testnet aims to enhance interoperability within the web3 ecosystem and provide a platform for developers to create consumer-centric applications. This move is part of OKX’s broader effort to position itself as a developer-first platform and bridge 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). This collaboration highlights the importance of scalability and cross-network operability in attracting developers to the X1 platform. These features are crucial for building a robust infrastructure capable of supporting the next generation of web3 applications.
The launch of the X1 testnet comes shortly after Coinbase introduced its Optimism-based layer 2 network in August. This trend indicates a growing interest among centralized exchanges in proprietary layer 2 solutions. Exchanges like Kraken may follow suit and unveil similar developments to broaden their user base beyond crypto enthusiasts and explore 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, leveraging 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. It also introduces account abstraction capabilities, allowing 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 plans to debut the X1 layer 2 network mainnet in Q1 2024, demonstrating the exchange’s commitment to leading innovation in Web3 technology. This strategic move aligns with their global brand campaign, which promotes self-managed technology solutions as part of a new paradigm shift within the digital landscape.
It is important to note that this article was generated with the support of AI and reviewed by an editor to ensure accuracy and journalistic standards.