Big exchange, big opportunity? : OKX CHAIN
Intro
If DeFi has the adoption we see today it’s also thanks to big exchanges (CEX), experimenting on the Decentralized Finance ecosystem and introducing it into their services,
moreover improving the exchange token utility and its own tokenomics (eg: buy and burn system, gas fees paid with the exchange token).
Cz (CEO of Binance) said several times that “Decentralized exchanges will be bigger than centralized exchanges within 10 years”, that’s why many CEXs are investing heavily into DeFi,
trying to gain this way an advantaged position in relation to the future awaiting them, and therefore being a “landmark” within the DeFi space.
Also see:
On-Chain Volume on DEXs Surpasses its Centralized Counterparts:
https://cryptopotato.com/on-chain-volume-on-dexs-surpasses-its-centralized-counterparts-chainalysis/
Two successful CEX-built Blockchains
Now the first two bigger projects made by CEXs deal with the blockchain creation of the BNB Chain and the Cronos Chain. These two performed really well, in fact the BNB chain is the second most utilized chain after the Ethereum one.
Cronos chain is relatively newer than BNB chain, but despite its youthness, the ecosystem is growing really fast and more and more projects are building on top of that.
The two blockchains have common features, which are also good because of the choice of implementing and selecting a project which make them inter-operable, cheap and pretty scalable; Cosmos
But let’s see these features:
• The chains are built through the so called Cosmos SDK, that allow a fast and secure way to launch a blockchain, with all the benefits deriving by building on Cosmos.
• They use a consensus algorithm known as Tendermint.
• They have integrated the IBC (inter-blockchain communication protocol) in order to be inter-operable (if you want to go deeper on inter-operability, i have written other articles that cover that point).
• They are EVM-compatible. Ethereum is the DeFi king so it’s important to establish a connection capable of allowing a “co-operation’ among chains and ecosystems.
• They aim to be cheap (DeFi mass adoption is therefore incentivized)
So, when a big exchange is building its DeFi ecosystem and own blockchain, the Cosmos space is usually involved, in fact, recently many projects are moving toward it. Kujira has built its chain on Cosmos right after the LUNA-UST fiasco:
https://medium.com/team-kujira/the-future-of-kujira-485d43c4729c
Dydx and others are launching on Cosmos too and it will be interesting to see how inter-operability is going to evolve the “enviroment” once, moreover, many communities and so DAOs will have joined as well.
OKC
Now the OKC or OKX Chain, understood the Cosmos potential and decided to implement the IBC into its chain, making it able to communicate with other chains and therefore to be open to new opportunities, like partnerships but also capital and funds.
The chain is EVM-compatible and uses Band Protocol as an oracle.
Furthermore the mission is to build a wide area where Web3 development and innovation is present, covering DeFi, Web3 tools, Gaming, NFTs and more…It is so a programmable smart contracts platform for the next-gen Web3 applications.
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At the moment there are over 160 Dapps built on OKC, but the utilization rate is really low and the chain is going through a “drought period”.
This liquidity scarcity could now disappear since the Cosmos community welcomed OKC into the ecosystem, and OKX is working hard to get that progress on which it has a vision.
Let’s see some recent data:
We could say that OKC is still under construction even though many Dapps have already deployed on it.
It will be highly interesting to see how the team is going to bring value in the space. This will work as a case-study for other projects willing to launch their chain too.
Finally, another point of interest will be around the OKT (OKX token). How is it going to be integrated into the chain and with what utilities?
An answer to these questions will come with time. For the moment let’s keep an eye on it (NFA)
I hope you liked this thread and learned something new. Feel free to leave a follow and a clap✔️
