OKC (OKX Chain) Overview
Sep 15, 20224 min read
What Is OKC?
OKC (OKX Chain) is an EVM-compatible L1 built on Cosmos, focusing on true interoperability (IBC) and maximized performance. At high scalability, developers can build and scale with low gas fees. The OKC ecosystem and infrastructure, including the all-in-one multi-chain Web3 interface, enables a seamless experience for developers and users.
OKC adopts a multi-chain approach, encouraging projects to start building with a focus on interoperability as OKC enables seamless cross-chain transactions, incentivizing more liquidity and swaps to create a self-sustaining and ever-growing ecosystem.
The network is the brainchild of OKX, a cryptocurrency exchange founded in 2014 and based in Malta. According to CoinMarketCap, it is the 18th largest cryptocurrency exchange in the world by volume.
Ethereum Virtual Machine (EVM) Compatibility
Ethereum Virtual Machine feature makes an environment for smart contracts to operate and interact with other contracts. The Ethereum smart contracts are coded in the Solidity programming language and then converted into EVM bytecode, a computer-readable code for Ethereum Virtual Machine. As the EVM isolates code input and execution functions from the Ethereum blockchain, other blockchains can run Ethereum DApps if EVM is compatible.
OKC is the first Cosmos-based network to integrate EVM compatibility. That allows developers to easily migrate their Ethereum DApps to OKC without writing new code, making it a cross-chain-friendly ecosystem.
The OKC team launched EVM-compatible wallet addresses. Each OKC user will have two wallet addresses: a native OKC wallet address and an EVM-compatible one.
The OKC has its own token, $OKT, giving you unique abilities to participate in the OKC security and governance. You can also hand your OKT over to one or more of the 100 validators on the OKC blockchain to get more OKT via Proof-of-Stake. Through on-chain governance proposals, you can vote with your OKT to make a difference in the OKC's future development.
To become a validator, you need to stake at least 10,000 OKT. Besides that, a definite number of OKT tokens should be deposited to offer a chain-governance proposal or make an order pending operation.
OKT holders get their voting rights by staking their tokens. One address can vote for up to 30 validator candidates, and the number of votes for each validator candidate equals the amount of OKT the address has staked. E.g., 1 OKT = 1 vote.
OKT is fuel for the OKC ecosystem, and that value influences the development prospects of DEX, DeFi, and other applications working on the OKC.
$OKT Use Cases
- System resources
A program operating on the OKC network requires OKC to use some of the network resources — such as computation, storage, and bandwidth, depending on its operational needs. OKC charges transaction fees for any usage of mentioned recourses.
To keep the network safe, a user must provide a certain portion of OKT before applying for a node to become a validator or a proxy node, suggesting a chain governance proposal, or conducting an order pending operation.
OKT holders can issue new tokens on the OKC network, freely traded on OpenDEX, as soon as the relevant proposal application and activation are completed through digital asset trading pairs. Each relevant operation — token issuance and activation, additional issuance, and destruction of digital asset trading pairs — would incur a corresponding handling fee that needs to be paid.
- Match-making security
A block has a limited capacity, and as the volume of pending orders on OpenDEX only rises, the number of transactions that the block can process in a single cycle may exceed the carrying capacity of the block. So what? As a result, the system cannot distinguish junk token pairs from valuable ones. How does OpenDEX choose the transactions to be processed by the block?
The OKC team implemented match-making security. That means an operator can delegate any amount of OKT as security for each trading pair. The match-making system prioritizes trading pairs with higher deposits or selects transactions according to the chronological order of submission if the deposits are the same.
That’s one of the most crucial features for OKT holders. It allows them to be involved in validator elections and on-chain governance. Holders get voting rights by providing their tokens.
During block production, the validators are elected by calculating their voting weights defined by the holders’ votes or proxies. Validators are also in charge of decisions on proposals.
If you want to learn even more about the OKC, don’t neglect to do your own research by following the project on social media and exploring new facts, the freshest updates, and community talks: here are OKC’s channels for any taste.
OKC believes that the future is multi-chain, and for that to happen, OKC is constantly working towards better interoperability without compromising scalability and security. OKC envisions a multi-chain network that brings equal opportunity to all users, developers, and projects.
At the core of the OKC are Cosmos SDK and Tendermint. The combination of the Inter-Blockchain Communication protocol and Tendermint consensus algorithm delivers instant finality and can be used to realize value transmission between blockchains. The primary transfer transaction speed of OKC has reached 5000+ TPS, which is battle-tested and brings a smooth user experience.