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NEW YORK – Cryptocurrency exchange OKX announced the deployment of its X1 layer 2 testnet, an initiative that marks an important milestone in the company’s strategy to drive mass adoption of web3 technologies. Developed in partnership with Polygon Labs, the test network uses cutting-edge zero-knowledge technology to strengthen security and improve cost efficiency.
The X1 testnet is designed to improve interoperability within the web3 ecosystem, providing a platform for developers to build consumer-centric applications. The initiative is part of OKX’s broader efforts to position itself as a developer-first platform, connecting its user base of more than 50 million people with communities. By integrating payable transaction fees with its native OKB token, OKX also contributes as a core member to the Polygon Labs Chain Development Kit (CDK).
Jason Lau, chief innovation officer at OKX, highlighted the importance of scalability and cross-network operability in attracting developers to the X1 platform. He noted that these features are crucial to building a robust infrastructure capable of supporting the next generation of web3 applications.
This launch follows the August introduction of Coinbase’s (NASDAQ:) Layer 2 network, based on Optimism, and paves the way for other centralized exchanges, like Kraken, to unveil similar developments. This trend highlights exchanges’ growing interest in proprietary Tier 2 solutions aimed at expanding their user base beyond cryptocurrency enthusiasts and exploring new revenue opportunities through the integration of decentralized applications (dApp) and transactional services.
In addition to the testnet debut, OKX has integrated its portfolio with the X1 network, using Polygon’s CDK and its native network to advance interoperability and development. The wallet update includes Multi-Party Computation (MPC) technology for enhanced security and streamlined recovery processes, while introducing account abstraction capabilities that enable multi-blockchain transactions using stablecoins such as USDC or USDT.
The X1 testnet supports existing Ethereum Virtual Machine (EVM) contracts and development tools without requiring code changes, ensuring full compatibility with Ethereum. Users will benefit from seamless asset transfers between OKX mainnet and the X1 layer via OKB, which serves as the native token for gas payments on the new platform.
OKX’s launch of the X1 Network Layer 2 testnet is scheduled for a mainnet debut in Q1 2024, signaling the exchange’s commitment to leading innovation in Web3 technology. This strategic move aligns with the brand’s global campaign promoting self-managed technology solutions as part of a new paradigm shift in the digital landscape.
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