OKX's Ethereum Layer-2 Network X Layer Goes Live

OKX’s Ethereum Layer-2 Network X Layer Goes Live

On Monday, April 15, the Seychell-based crypto exchange OKX launched an Ethereum-based layer-2 network, X Layer. The launching of OKX’s X Layer will rival the Coinbase base.

To overcome the fierce competition in the crypto sector, the latest development of the OKX will lower transaction fees and boost interoperability capability with a decentralized application.

OKX Debut Ethereum Layer-2 Network

In the announcement, the OKX team stated that the X Layer will offer the user the fastest and most cost effective approach to executing transactions.

A review of the OKX announcement demonstrated that the X Layer public mainnet would be on a zero knowledge-proof network. During the development of X Layer, the OKX team leveraged the Polygon chain development kit (CDK) to enable users to share their liquidity and network state across multiple blockchain networks through the Ethereum scaling protocol aggregation layer (AggLayer).

Compared to other transactions completed on the Ethereum mainnet, the X Layer allows users to interact seamlessly with other on-chain applications. The developers leveraged the power of ZK-proofs to enhance the security and scalability of the X layer.

In most cases, the ZK-proofs are used to strengthen the security of the Ethereum layer 2. Besides integrating the ZK-proof- the X Layer is compatible with EVM to enable the developers to shift the Ethereum-based decentralized applications with fewer requirements such as rewriting code.

Features of X Layer

An announcement conveyed by the chief marketing officer at OKX, Haider Rafique, stated that launching the X Layer plays a significant role in building an interconnected Web3 ecosystem. The executive confessed that the team behind the X Layer was creating a seamless and interoperable system.

He believes that X Layer has enormous potential to redefine the crypto sector. Rafique applauded the OKX community for supporting X Layer. Initially, the X Layer beta version was launched in November last year.

During the launch, over 50 Web3-based Dapps were launched on the X Layer testnet. Most of the Dapps launched on X Layer  included Graph, LayerZero, Galaxy, Curve and QuickSwap.

The X Layer will leverage the advanced technologies to allow the OKX users to transfer assets by depositing and withdrawing cryptos on the  exchange. This development will enable the user to access around 200 Dapps offering tokens, staking services, smart contract functionalities and swaps.

In the meantime, the OKX team will issue its token OKB as a native coin for X Layer, which will be used to settle the gas fees on the network.

Significance of Ethereum Layer-2 Network

Beyond this, the developers leverage Polygon CDK to connect multiple chains through the AggLayer. This development will allow the transition of liquidity across numerous chains.

Commenting on this, the chief executive of Polygon, Marc Boiron, confirmed that the integration of Polygon CDK creates an interconnected network of liquidity across chains. The CEO admitted that the development of AggLayer aimed at addressing the fragmentation of liquidity concerns.

With the integration of AggLayer on X Layer, OKX customers can access other chains effortlessly. The AggLayer was launched in January to support the movement of funds across multiple chains.

The launching of AggLayer marked a monumental step in redefining the blockchain ecosystem. The development of OKX’s X Layer came when the customers needed to execute transactions faster and at a friendly cost.

In an earlier publication, the renowned investment manager VanEck projected that the Ethereum Layer 2 networks will reach $1 trillion in market capitalization in the next decade. The VanEck underlined the Ethereum Layer 2 networks’ significant roles in completing the decentralized transaction at a low cost.

In July last year, the Coinbase team created an Ethereum layer 2 network dubbed base. Since the launch of Base, over 8 million users have been using the Coinbase Ethereum layer 2 network. According to Dune Analytics, transactions worth over 154 million have been completed on the Base network.

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