OKX Unveils New Layer 2 Network X1 Built on Polygon Technology

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The cryptocurrency landscape continues to evolve at a rapid pace, with major exchanges expanding beyond trading platforms into blockchain infrastructure. OKX, one of the world’s leading digital asset exchanges, has announced the development of X1, a new Layer 2 (L2) blockchain built using Polygon’s Chain Development Kit (CDK). This strategic move positions OKX at the forefront of Web3 innovation, aiming to enhance scalability, reduce transaction costs, and onboard more users into decentralized ecosystems.

Scheduled to launch in the first quarter of 2024, X1 leverages zero-knowledge (ZK) rollup technology, a cutting-edge cryptographic method that boosts Ethereum’s throughput while maintaining security and decentralization. As part of this initiative, OKX will integrate its native token, OKB, as the primary gas fee currency on the X1 network—further solidifying its utility within the broader blockchain economy.

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The Rise of Exchange-Led Layer 2 Networks

OKX is not alone in its pursuit of blockchain infrastructure. In recent months, major players like Coinbase and Kraken have also entered the L2 race. Coinbase launched Base, an Optimism-powered L2 using the OP Stack, marking a significant milestone for publicly traded companies embracing decentralized tech. Meanwhile, Kraken is reportedly exploring its own Layer 2 solution, with Polygon’s CDK among the technologies under consideration.

Despite competitive dynamics, Polygon Labs CEO Mark Boiron views these developments as complementary rather than conflicting. “You can look at all these chains as being competitive, or you can look at them as kind of being one,” Boiron said in an interview with CoinDesk. He emphasized the importance of interoperability, stating, “If we can have the biggest ecosystem of chains that are all interoperable, then everyone that is part of that ecosystem is going to win.”

This vision aligns closely with the ethos behind X1—building a scalable, developer-friendly network that seamlessly connects with existing ecosystems while empowering creators and users alike.

How X1 Leverages Polygon’s CDK and ZK Technology

At the heart of X1 is Polygon’s Chain Development Kit (CDK), a modular framework designed to help teams build customizable, Ethereum-aligned Layer 2 networks. The CDK supports both optimistic and zero-knowledge rollups, but X1 specifically adopts ZK-based scaling due to its superior security model and faster finality.

Zero-knowledge proofs allow transactions to be validated without revealing underlying data, enabling high throughput and strong privacy guarantees. By integrating ZK technology, X1 ensures low-latency operations and cost-efficient transactions—key factors for mass adoption.

Moreover, OKX engineers will become core contributors to the CDK project, actively participating in its ongoing development. This collaboration strengthens the open-source foundation of Polygon’s technology while ensuring that X1 evolves in tandem with broader industry advancements.

OKB as Gas: Expanding Token Utility

One of the most significant aspects of the X1 rollout is the use of OKB as the native gas token. Traditionally used for fee discounts and platform governance on OKX, OKB now gains expanded utility as a functional currency within a live blockchain environment.

This shift enhances OKB’s value proposition by:

Jason Lau, OKX Chief Innovation Officer, highlighted the strategic intent: “X1 will be a key pillar of our efforts to educate and bring our users on-chain and into the world of Web3. This scalable and accessible network is perfect for developers, who can build on X1 to deliver user-friendly, world-class consumer Web3 applications, all while maintaining interoperability with other networks and ecosystems.”

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Developer-Centric Design and Ecosystem Growth

X1 is engineered with developers in mind. With full EVM (Ethereum Virtual Machine) compatibility, existing dApps can migrate with minimal friction. Additionally, the network offers robust tooling, APIs, and documentation to accelerate development cycles.

By lowering barriers to entry, OKX aims to attract a global community of builders focused on creating intuitive Web3 experiences—from decentralized finance (DeFi) protocols to NFT marketplaces and social platforms.

Interoperability remains a core principle. X1 will support bridges to Ethereum and other major chains, ensuring liquidity and user mobility across ecosystems. This cross-chain functionality is essential for avoiding fragmentation and fostering long-term growth.

Competitive Landscape and Industry Impact

The emergence of exchange-led blockchains signals a shift in how digital asset platforms perceive their role. No longer just facilitators of trading, exchanges like OKX are becoming foundational players in blockchain infrastructure.

With X1, OKX joins a growing cohort of institutions investing in scalable solutions that address Ethereum’s limitations—high fees and congestion—without compromising security.

This trend reflects broader market demands:

As more exchanges explore L2 development, collaboration becomes increasingly vital. While competition drives innovation, shared standards and open-source contributions ensure sustainable progress across the industry.

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Frequently Asked Questions (FAQ)

Q: What is OKX’s X1 network?
A: X1 is a Layer 2 blockchain developed by OKX using Polygon’s Chain Development Kit. It leverages zero-knowledge rollup technology to offer fast, low-cost transactions on Ethereum while supporting dApp development and user onboarding.

Q: When will X1 launch?
A: The network is expected to go live in the first quarter of 2024.

Q: What is the role of OKB on X1?
A: OKB serves as the gas token for paying transaction fees on the X1 network, significantly expanding its utility beyond exchange-based benefits.

Q: Is X1 compatible with Ethereum?
A: Yes, X1 is EVM-compatible, allowing seamless migration of Ethereum-based dApps and tools.

Q: How does X1 compare to other exchange-led L2s like Base?
A: While Coinbase’s Base uses Optimism’s OP Stack with optimistic rollups, X1 is built on Polygon’s CDK with zero-knowledge technology—offering different trade-offs in terms of security assumptions and finality speed.

Q: Will developers be able to earn from building on X1?
A: Yes, developers can monetize their dApps through user fees, token models, and potential incentive programs supported by OKX and ecosystem partners.

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