The cryptocurrency exchange OKX has recently introduced X Layer, its layer-2 network based on Ethereum, which utilizes zero-knowledge proofs to lessen transaction costs and improve compatibility with various on-chain applications. X Layer's mainnet was launched on April 15, employing Polygon's chain development kit (CDK) to enable shared state and liquidity across multiple blockchain networks by utilizing Ethereum's Aggregation Layer.
The new network, EVM-compatible, offers developers the convenience of launching or transferring their decentralized apps (DApps) from Ethereum without the need to rewrite the code. According to OKX's chief marketing officer Haider Rafique, X Layer and similar layer-2 networks are expected to play a crucial role in the emerging Web3 ecosystem, facilitating seamless interaction among different networks.
The mainnet beta of X Layer was initiated in November 2023, attracting over 50 Web3 DApps to operate on the testnet. Several notable DApps, including the Graph, Curve, LayerZero, QuickSwap, Galaxy, and Timeswap, are in the process of migrating to OKX's layer-2 network. X Layer will enable OKX users to carry out asset transfers, deposits, and withdrawals, while also accessing nearly 200 DApps offering a range of functionalities such as token swapping, staking, and smart contracts. OKX's native token OKB will be utilized for paying gas fees on X Layer's network.
The interaction between X Layer and Polygon CDK is highlighted to provide mutual benefits for OKX, X Layer, and other chains linked to Polygon's AggLayer. This connection allows liquidity transition among the different chains built on Polygon CDK, as stated by Polygon CEO Marc Boiron. The seamless transfer of liquidity across chains contributes to the growth and development of the entire network.
Ethereum's layer-2 networks are expected to experience significant growth, potentially exceeding $1 trillion in market capitalization by 2030. These networks play a vital role in Ethereum's scalability, promoting secure, cost-effective, and decentralized transactions and applications.
