crypto exchange OKX has launched a testnet for an upcoming Layer 2 ethereum network called “X1,” according to a Nov. 14 announcement. The network is being developed using the Polygon Chain Development Kit (CDK) and will use zero-knowledge proofs to validate cross-layer deposits and withdrawals.
OKX is the sixth largest centralized crypto exchange by volume, with over $1.8 billion in trading volume per day. according to data from CoinMarketCap. Its token, OKB, has a current market capitalization of over $3.6 billion, making it a top 30 cryptocurrency. When a major version of the new network is launched, OKB will be the native currency used to pay gas fees, according to the announcement.
X1 is being developed using the Polygon CDK, potentially making it part of the broader Polygon ecosystem that includes Polygon’s zero-knowledge ethereum virtual machine, Polygon PoS, Nearby, Manta Pacific, and other networks. According to the announcement, OKX will also be a primary contributor to the Polygon CDK software in the future and will “invest significant engineering resources to improve the technology stack for ethereum scaling solutions.”
Related: Polygon Labs and Near Announce ZK Tester for WASM Integration
Jason Lau, chief innovation officer at OKX, said the new network will help bring new users to Web3, saying:
“X1 will be a key pillar of our efforts to educate and bring our users into the chain and world of Web3. “This scalable and affordable network is perfect for developers, who can leverage X1 to deliver world-class, easy-to-use consumer Web3 applications while maintaining interoperability with other networks and ecosystems.”
OKX is also the creator of OKT Chain, an ethereum sidechain that uses OKB as its native currency. It’s not the only exchange building its own network: Binance launched BNB Chain in 2019 and Coinbase launched its layer 2 “Base” network on August 9.
