Crypto exchange OKX has announced the launch of a testnet for an upcoming Ethereum layer-2 network named “X1” on Nov. 14. The network is being developed using the Polygon chain development kit (CDK) and will utilize zero-knowledge proofs to validate deposits and withdrawals between layers.
Ranked as the sixth-largest centralized crypto exchange by volume, OKX has over $1.8 billion in trading volume per day, according to data from CoinMarketCap. Its token, OKB, currently has a market cap of over $3.6 billion, making it one of the top 30 cryptocurrencies. Once the mainnet version of the new network is launched, OKB will be used as the native coin to pay gas fees, as stated in the announcement.
X1 is being developed using the Polygon CDK, potentially positioning it within the broader Polygon ecosystem, which includes Polygon zero-knowledge Ethereum Virtual Machine, Polygon PoS, Near, Manta Pacific, and other networks. OKX will also be a core contributor to the Polygon CDK software going forward and will “invest substantial engineering resources to enhance the technology stack for Ethereum scaling solutions,” according to the announcement.
Related: Polygon Labs and Near announce ZK prover for WASM integration
OKX chief innovation officer Jason Lau stated that the new network will help to onboard new users to Web3, saying:
“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.”
In addition to the X1 network, OKX is also the creator of OKT Chain, an Ethereum sidechain that uses OKB as its native coin. It isn’t the only exchange to build its own network, as Binance launched BNB Chain in 2019, and Coinbase launched its layer-2 “Base” network on Aug. 9.