- Cryptocurrency exchange OKX is launching a new layer 2 chain called X1 built on Polygon to offer faster and cheaper trading.
- X1 will use the OKB token for gas fees and is designed specifically for trading and financial applications.
- The launch comes as rival exchanges like Coinbase and Kraken pursue their own layer 2 projects, making custom chains a growing trend.
OKX is one of the largest cryptocurrency exchanges in the world. The exchange is now expanding its offerings by building a custom layer 2 chain specifically designed for trading and financial applications.
The New X1 Chain
X1 is being built on top of Polygon, which leverages a network of sidechains to offer faster and cheaper transactions while still benefitting from Ethereum’s security. Polygon has become one of the most widely used layer 2 solutions.
Competition from Other Exchanges
The launch of X1 comes as other major exchanges are working on their own layer 2 projects. Coinbase recently acquired layer 2 startup ZkSync, while Kraken is reportedly developing a layer 2 chain as well.
By building X1 on Polygon, OKX benefits from shared security while still having a custom-designed chain optimized for its needs. The chain could potentially give OKX an advantage over rivals.
As demand grows for scaling solutions that can reduce fees and improve speeds, custom layer 2 chains are likely to proliferate. OKX is positioning itself at the forefront of this trend with the X1 chain. Its performance and adoption will be important metrics to watch as the layer 2 landscape evolves.