Contents
Toggle
OKX announces the launch of L2 network – X1
What does so many L2 mean?
According to official sources, OKX exchange has announced the launch of a Layer 2 network called “X1”. This network will be built using Polygon’s Blockchain Development Kit (CDK) and ZK (Zero-Knowledge Proof) technology, and is expected to go live in the first quarter of 2024. According to the official statement, OKX’s platform token OKB will serve as the native token of this network, acting as the fuel fee medium for executing transactions.
Additionally, with the launch of X1, OKX’s engineers will become core contributors to Polygon CDK, meaning they will be involved in the development and continuous improvement of the project’s codebase.
According to sources, Kraken exchange also plans to use Polygon’s CDK to build their own Layer 2 network. Many believe that this may impact the adoption of Polygon’s network itself. In response, Polygon Labs CEO Mark Boiron believes that their collaboration with major exchanges will not affect Polygon’s prospects in the market. On the contrary, these developments should attract more institutions, including exchanges. Mark Boiron explained:
Since Coinbase launched the L2 network Base based on OP Stack, Kraken exchange followed suit by announcing their own L2 network construction project. Bybit exchange’s BitDAO also announced the Ethereum L2 network project Mantle Network as early as last year. However, the question of whether it makes sense for various exchanges to launch their own blockchain networks has sparked discussions in the community. Synthetix founder Kain Warwick mocked on Twitter:
And well-known KOL Cobie imagined the possible scenario when the real payment scene is filled with a bunch of L2 networks:
Finally, Cobie sarcastically added, “Clearly, what we really need is an L2 for every city, not for every exchange.”