OKX launches its Layer-2 blockchain, leveraging Polygon’s technology, to enhance digital transaction efficiency.
Leading crypto exchange OKX has introduced its own exclusive Layer-2 blockchain, the X1 chain, leveraging technology from Polygon. This move places OKX in a growing league of exchanges actively developing secondary networks to enhance the efficiency and cost-effectiveness of digital asset transactions.
This strategic step by OKX follows the trend set by major players like Coinbase, which launched its Base blockchain in August, quickly attracting developer and user interest. Bloomberg reports that Kraken, another major exchange, is also considering the development of its Layer-2 blockchain.
The emergence of Layer-2 solutions, spearheaded by entities like Polygon, Optimism, and Arbitrum, has primarily aimed to augment Ethereum’s capabilities. OKX’s X1 chain is anticipated to be accessible to end-users in early 2024. A team of fifty developers from OKX is currently dedicated to developing the X1 chain.
This trend underscores a broader shift in the cryptocurrency ecosystem, where exchanges are not only facilitators of digital asset transactions but also innovators in blockchain technology, seeking to optimize transactional efficiency and broaden the scope of blockchain applications. However, it remains to be seen whether or not the development of L2 chains can be significantly profitable for exchanges.