Layer 1 (L1) and Layer 2 (L2) in blockchain are complementary architectural layers that solve scalability issues, with significant differences in positioning, technical implementation, and application scenarios. The OKB Chain (i.e., X Layer) is a typical L2 chain designed to extend the Ethereum ecosystem through high performance and low cost. The following is a specific analysis:

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### ⚖️ 1. The Core Differences Between Layer 1 and Layer 2

#### **1. Positioning and Function**

- **Layer 1 (Base Layer)**

- **Role**: The core underlying blockchain (like Ethereum, Bitcoin), directly handling transaction settlement, data storage, and consensus mechanisms (like PoW/PoS), serving as the foundation for security and decentralization.

- **Limitations**: Faces the 'impossible triangle' dilemma (decentralization, security, scalability hard to balance), leading to slow transaction speeds (e.g., Ethereum around 15 TPS), high Gas fees, and frequent congestion.

- **Layer 2 (Expansion Layer)**

- **Role**: Protocols built on L1 that transfer most computations off-chain, submitting only final results to L1, thereby improving performance.

- **Advantages**:

- **High Throughput**: Achieves thousands of TPS through technologies like Rollup (e.g., X Layer reaches 5000 TPS);

- **Low Cost**: Gas fees close to zero, suitable for high-frequency small transactions;

- **Compatibility**: Inherits L1 security while supporting customized development (like ZK-Rollup, state channels).

#### **2. Technical Implementation Comparison**

The table below summarizes the key differences between L1 and L2:

| **Features** | **Layer 1** | **Layer 2** |

|----------------|----------------------------------|--------------------------------------|

| **Consensus Mechanism** | Native protocols like PoW/PoS | Relies on L1's security (like ZK proofs) |

| **Transaction Speed** | Low (Ethereum 15 TPS) | High (X Layer reaches 5000 TPS) |

| **Cost** | High Gas fees (surge during congestion) | Near zero Gas fees |

| **Scalability** | Requires sharding and hard fork upgrades | Flexibly scalable through off-chain computation |

| **Representative Cases** | Bitcoin, Ethereum | Polygon, Arbitrum, X Layer |

#### **3. Typical Solutions**

- **L1 Scalability**: Sharding, block expansion (like Bitcoin SegWit).

- **L2 Scalability**:

- **Rollup**: ZK-Rollup (zero-knowledge proof, efficient and secure) and Optimistic Rollup (fraud proof, highly compatible);

- **State Channels**: Off-chain microtransactions (like lightning networks);

- **Side Chains**: Independently run but reliant on the main chain's security (like Polygon PoS chain).

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### 🔗 2. Is OKB Chain (X Layer) an L2 Chain?

**Yes, the OKB Chain, i.e., X Layer, is a typical L2 chain**, with its positioning and technical characteristics as follows:

#### **1. Technical Architecture and Positioning**

- **Basic Framework**:

Built on Polygon CDK (Chain Development Kit), the **ZK-Rollup chain** is fully compatible with Ethereum EVM, allowing developers to seamlessly migrate DApps.

- **Performance Indicators**:

- Throughput reaches **5,000 TPS**, Gas fees close to zero;

- Ensures transaction validity through ZK proofs while inheriting the security of Ethereum's mainnet.

#### **2. Ecological Integration and Strategic Significance**

- **Token Economic Model**:

- OKB, as the native token of X Layer, is used to pay Gas fees and for ecosystem governance;

- After the upgrade in August 2025, the total supply of OKB will be permanently locked at **21 million** (deflationary model), while integrating the original OKT Chain ecosystem (OKT is exchanged for OKB at a ratio of 1:9.5).

- **Business Collaboration**:

- Deeply integrated with OKX Exchange, OKX Wallet, and OKX Pay, achieving '0 Gas withdrawal' and real-time payment settlement;

- Focus on DeFi, payments, RWA (real world assets) sectors, leveraging OKX's 60 million user base for traffic.

#### **3. Comparison Cases with L1 Chain**

- **OKX's Original L1 Chain (OKT Chain)**:

Developed based on the Cosmos SDK, with an independent consensus mechanism, performance and ecological scalability are limited.

- **Reason for X Layer (L2) Replacement**:

- Technological generational advantage (ZK-Rollup vs. Cosmos SDK);

- Ethereum ecosystem compatibility brings richer DApps and users;

- Data metrics comprehensively surpass OKT Chain (number of addresses, activity).

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### 💎 3. Summary: The Collaborative Relationship Between L1 and L2 and the Positioning of OKB Chain

- **Complementary Rather Than Replacement**:

L1 provides the foundation for security and decentralization, while L2 addresses performance bottlenecks, with both collaborating to advance blockchain implementation (like Ethereum + L2 ecology).

- **L2 attributes of OKB Chain (X Layer) are clear**:

As a ZK-Rollup chain, it serves as an extension layer for Ethereum, focusing on high performance, low cost, and ecological integration, recently promoting OKB value growth through deflationary models and business collaboration.

> 💎 In short: **L1 is the foundation, L2 is the highway; X Layer is the 'ZK-powered highway' laid by OKX on Ethereum, carrying all its ambitions for future on-chain ecology.**