OKX launches X Layer on Polygon in an effort to influence Web3 infrastructure and leaves India due to regulatory obstacles.
TakeAway Points:
- OKX launches X Layer, a polygon-powered layer-2 blockchain, enhancing its ecosystem with over 170 dapps for its 50 million users.
- OKX is taking a calculated risk by launching X Layer, which is intended to serve as the “highway infrastructure” of Web 3. Other exchanges are working on layer-2 solutions.
- Unified liquidity across chains is promised via the connection with Polygon’s AggLayer, which represents a major breakthrough in blockchain interoperability.
OKX Releases X Layer Blockchain
The fourth-biggest cryptocurrency exchange in the world, OKX, has formally introduced its layer-2 blockchain network, called X Layer, on its open mainnet.
This action fits with a larger pattern of big crypto firms creating their own decentralised networks. X Layer, formerly known as X1, uses zero-knowledge technology to provide developers with a customisable toolset for creating their own chains using Polygon’s Chain Development Kit (CDK). This development comes after other prominent cryptocurrency exchanges have taken similar steps, such as Coinbase with its “Base” blockchain and Kraken reportedly expressing interest in creating its own layer-2 solution.
Combining Polygon’s Ecosystem
The coding of the CDK will be enhanced by the contributions of OKX’s developers, guaranteeing the integration of X Layer with Polygon’s vast ecosystem via the AggLayer. The objective of this integration is to standardise liquidity among different chains created with Polygon’s technology.
The integration’s importance was emphasised by Polygon Labs CEO Mark Boiron, who said that OKX’s 50 million customers will now have an easy way to onboard to X Layer and other chains that are linked to the AggLayer. With ambitions to host over 170 decentralised applications (dapps), X Layer, which was first introduced on a testnet in November, is ready to go.
“OKX’s 50 million users now have an easy path to onboarding to X Layer and all the other chains connected to the AggLayer.” Boiron, said.
Web3 Infrastructure Vision
As the backbone of the Web3 world’s infrastructure, OKX sees X Layer and related layer-2 chains as akin to motorways that provide access to dApps, which function as markets, and self-hosted wallets, which function as automobiles.
Haider Rafique, Chief Marketing Officer of OKX, stressed how these technologies would influence Web3 in the future by offering a strong foundation for the creation and implementation of decentralised apps.
“We envision X Layer and other layer-2 chains as the highway infrastructure of the Web3 world, with dApps as the marketplaces and self-hosted wallets as the vehicles that take you there.” Rafique, said.
OKX Exits India Due To Regulatory Issues
Significantly, OKX declared that it will stop doing business in India by the end of April, citing difficulties with local regulations. This judgement follows India’s March 2023 decision to include digital asset service providers in its anti-money laundering framework. OKX urged its Indian clients to settle all margin positions and remove funds by April 30. OKX was not registered with the Financial Intelligence Unit India (FIU IND) by the end of 2023.
With other exchanges, including Binance, Kraken, and MEXC Global, being tagged for operating unlawfully in the nation, this move is a reflection of the larger regulatory concerns confronting cryptocurrency exchanges in India.
