OKX, a cryptocurrency exchange, has introduced its own Ethereum-based layer-2 network, following in the footsteps of Coinbase, to offer reduced fees and interoperability for users engaging with decentralized applications.

Dubbed X Layer, OKX's zero-knowledge proof powered network went live on April 15, leveraging Polygon's chain development kit (CDK) to facilitate shared state and liquidity across multiple blockchain networks via the Ethereum scaling protocol's Aggregation Layer.

X Layer boasts faster and more cost-effective transaction capabilities for on-chain applications, utilizing ZK-proofs for enhanced security and scalability, a technology widely adopted by Ethereum layer-2 networks. Moreover, it is EVM-compatible, allowing developers to seamlessly launch or migrate Ethereum-based decentralized apps (DApps) without code modification.

Haider Rafique, OKX's chief marketing officer, sees layer-2 networks like X Layer as crucial infrastructure for an interconnected Web3 ecosystem, highlighting the network's potential for seamless integration and interoperability.

OKX initially introduced the mainnet beta of X Layer in November 2023, attracting over 50 Web3 DApps to the testnet. Notable DApps such as the Graph, Curve, LayerZero, QuickSwap, Galaxy, and Timeswap are currently in the process of deploying on OKX's layer-2 network.

X Layer enables OKX users to perform various activities such as asset transfers, cryptocurrency deposits and withdrawals, and access to nearly 200 DApps offering token swaps, staking, and smart contract functionality. The network's native token, OKB, serves as the primary token for gas fee payments.

Polygon CDK plays a pivotal role in the symbiotic relationship between OKX, X Layer, and other chains connected to Polygon's AggLayer. By connecting to other chains via the AggLayer, X Layer facilitates liquidity transition, addressing the liquidity fragmentation challenge across different blockchain protocols.

Marc Boiron, CEO of Polygon, emphasizes the interconnectedness facilitated by X Layer, promoting growth and liquidity sharing among chains connected to the AggLayer, thus benefiting OKX's vast user base.

VanEck, an investment management firm, forecasts that Ethereum layer-2 networks could surpass $1 trillion in market capitalization by 2030, underscoring their significance in achieving Ethereum's scalability goals and enabling low-fee, secure, and decentralized transactions and applications.