On Tuesday, the sixth largest cryptocurrency exchange OKX announced a partnership with blockchain platform Polygon Labs. The collaboration aims to launch a test network for X1, a new zkEVM layer-2 solution. The purpose of X1 is to improve transaction speeds and reduce costs, while also advancing the development of layer-2 networks and driving mainstream adoption of Ethereum scaling solutions.
The partnership between OKX and Polygon Labs will leverage Polygon’s zero-knowledge rollup technology to unveil X1. This network will utilize Polygon’s Chain Development Kit (CDK) to leverage the security of the Ethereum blockchain while significantly enhancing performance. The launch of X1’s testnet will provide developers with the opportunity to build and test decentralized applications with increased scalability.
During the testing phase, OKX engineers will closely collaborate with the Polygon team to optimize the network for a full mainnet release, which is expected in Q1 2024. Jason Lau, OKX’s Chief Innovation Officer, expressed his excitement about X1 in a press release. He stated, “X1 will be a key pillar of our efforts to educate and bring our users on-chain and into the world of Web3. This scalable and accessible network is perfect for developers, who can build on X1 to deliver user-friendly, world-class consumer Web3 applications, all while maintaining interoperability with other networks and ecosystems.”
Polygon’s layer-2 solution utilizes zero-knowledge cryptographic proofs to bundle or “rollup” transactions off-chain before validating and recording them on Ethereum. This innovative technique has the potential to achieve up to 100-200x greater throughput compared to existing layer-1 blockchains, while still maintaining the security of Ethereum.
The launch of X1’s testnet coincides with major exchanges like Coinbase unveiling their own layer-2 networks. According to Polygon Labs CEO Mark Boiron, the success of X1 could attract more projects to Polygon’s interoperable ecosystem of scaling solutions. He stated, “If anything, frankly, it should be more attractive, including to exchanges.”
During the testing phase, OKB will be utilized as the native gas token on X1. In the future, the network aims to provide a fast and low-cost environment for various decentralized finance activities including trading, lending, staking, and more.
