OKX launches Ethereum layer-2 network for low fees and interoperability

Cryptocurrency exchange OKX has joined the likes of Coinbase in launching an in-house Ethereum-based Layer-2 network to offer low fees and allow users to interact with decentralized applications.

On April 15, OKX released the public network X Layer's Zero Knowledge Authentication Power Network. The network was built using the Polygon Chain Development Kit (CDK) and the integration layer of the Ethereum Scale Protocol to provide shared state and liquidity across multiple blockchain networks. .

An announcement shared with Cointelegraph suggests that X Layer will offer faster and cheaper transaction capabilities when connected to on-chain applications. The network uses ZK-proofs, the underlying technology used by various Ethereum layer-2 networks for enhanced security and scalability.

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X Layer is compatible with EVM, which allows developers to launch or migrate Ethereum-based decentralized applications (DApps) without having to rewrite the underlying code.

OKX Chief Marketing Officer Haider Rafique said in a statement that the X Layer and other Layer-2 networks are set to become critical infrastructure for the interconnected Web3 ecosystem.

“We are building an ecosystem that is as seamless and interoperable as possible. We think X Layer has limitless potential for our strong community and connections to other Ethereum-based networks,” said Rafique.

OKX launched the X Layer mainnet beta in November 2023, which attracted more than 50 Web3 DApps to launch on the testnet. OKX revealed that DApps including Graph, Curve, Layer Zero, QuickSwap, Galaxy and Timeswap are being deployed on its proprietary Layer-2 network.

X Layer allows OKX users to transfer assets, deposit and withdraw cryptocurrencies on OKX, and access token swap, staking, and smart contract functions for nearly 200 DApps. The OKX native OKB token functions as an X Layer native token and is used to pay gas bills on the network.

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The Polygon CDK is intended to provide the symbiotic benefits of OKX, X Layer, and other chains connected to Polygon's AggLayer. The X Layer basically communicates with other chains built on top of the Polygon CDK through an AggLayer, allowing for fluid exchange between these chains.

According to Polygon CEO Marc Boyron, this creates an interconnected network of liquidity across different blockchain protocols.

“X Layer's connection to AggLayer solves the liquidity and fragmentation of users in the AggLayer chain, allowing everyone to grow together. OKX's 50 million users now have an easy way to onboard X Layer and other chains connected to AggLayer.

Investment management firm VanEck estimates that Ethereum's layer-2 networks could exceed $1 trillion in market capitalization by 2030. These networks are critical to helping Ethereum achieve scale, low-fee, secure, and decentralized transactions and applications.

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