The cryptocurrency landscape has taken a significant step forward with the public mainnet launch of X Layer, the new layer-2 blockchain developed by OKX, the fourth-largest crypto exchange globally. This development marks a pivotal moment in the ongoing trend of major cryptocurrency platforms developing their own distributed networks, a move that enhances both performance and scalability within the digital asset space.
X Layer, which was initially introduced under the codename X1, employs advanced technology from Polygon’s Chain Development Kit (CDK). This innovative toolkit offers a customizable foundation, enabling developers to craft bespoke blockchain solutions. The integration of zero-knowledge technology within the CDK is particularly noteworthy as it enhances privacy and efficiency by enabling transactions to be validated without disclosing their full information.
The emergence of X Layer comes at a time when several leading cryptocurrency exchanges are exploring similar advancements. Notably, in August, Coinbase launched its Base blockchain, constructed using Optimism’s OP Stack. Additionally, reports suggest that Kraken is also exploring the development of its own layer-2 solution. These movements underscore a broader industry trend towards the adoption of proprietary blockchain technologies, which are seen as critical to supporting the next wave of crypto utility and adoption.
According to OKX’s recent announcement, their developers are actively contributing to the enhancement of the CDK codebase. This collaborative effort is expected to foster a more robust integration with Polygon’s broader ecosystem through a novel connection point called the AggLayer. The AggLayer is designed to centralize liquidity across various chains developed with Polygon’s technology, thereby streamlining transactions and improving user experience across the network.
Polygon Labs CEO Mark Boiron highlighted the strategic benefits of this integration, pointing out the streamlined onboarding process it offers to OKX’s substantial user base. “OKX’s 50 million users now have an easy path to onboarding to X Layer and all the other chains connected to the AggLayer,” Boiron said. This feature is crucial for enhancing user accessibility and engagement with decentralized applications (dapps).
Since its initial testnet launch in November, X Layer has rapidly expanded its capabilities. The platform currently supports over 170 dapps, with plans to incorporate more in the near future. This growing ecosystem positions X Layer not only as a technological infrastructure but also as a bustling marketplace of Web3 applications. As OKX Chief Marketing Officer Haider Rafique aptly puts it, the vision for X Layer and similar networks is to serve as the “highway infrastructure of the Web3 world,” facilitating seamless travel between applications and services within the crypto space.
This strategic expansion by OKX into layer-2 blockchain technology with X Layer underscores a significant shift in how crypto exchanges are positioning themselves within the broader digital economy. By building and integrating advanced blockchain networks, these platforms are laying the groundwork for a more interconnected and efficient future in the Web3 realm.
