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There’s still a substantial number of cryptocurrency and blockchain-related stuff happening within communist China, despite the threat of the highly contagious iteration of the Coronavirus. We start things off in Shanghai where the decentralized blockchain oracle network – Chainlink – recently hosted an event.
The Chainlink hackathon event
The event dubbed as Demo Day of the Layer-Two Hackathon was held on August 3 alongside IOSG Ventures which is an early-stage fund for decentralized protocols and companies. Its main goal is to support developers that are working on scaling solutions for the Ethereum network as this was backed by well-known projects from the crypto industry like The Graph, Matter Labs, Near, and even Polygon.
The collective who calls themselves ObjK won the event as they’ve been rewarded with mentorship and bounties. Also, it was learned that the winning team was a Synthetix-based asset management project.
What they did was utilize The Graph’s querying tech to extract data out of Synthetix. This helped them achieve an automated cross pool portfolio rebalance.
Layer-two popularity
Layer two in crypto is defined as solutions to scaling establish an additional protocol that is built on top of blockchains similar to those of Ethereum (ETH) and bitcoin (BTC). Per CoinMarketCap, it increases throughput minus the tampering with any of the original decentralization security features that are essential to the original blockchain.
With that in mind, these layer twos are pretty much well-known in China since users feel less concerned about custodial risks and decentralization.
OKExChain
In line with this, the Seychelles-based cryptocurrency exchange introduced their layer-two network – OKExChain. It’s an Ethereum Virtual Machine (EVM)-compatible network that is the same as the ones launched by other large exchanges.
In just a matter of seven days, OKExChain has amassed over $2 billion in assets. One of the reasons why the newly established network raked in that huge sum is that OKEx has a large userbase under its belt. So large that it currently ranks second next to Binance (sorted by volume).
About $350 million of that is on AMM CherrySwap which may seem like it’s pretty much based on Binance Smart Chain’s PancakeSwap. Another automated market maker – KSwap – also stacked up a huge sum amounting to $684 million in a 24-hour trade volume on Thursday.
JSwap turning heads
The decentralized transaction and assets management protocol that is JSwap was also launched on OKExChain. After it went live on the said network, it quickly piqued the interest of the public. Its user base has grown by hundreds of thousands, not to mention that it already has $60 million in total locked value (TVL). Investors can even earn APY up to 1476.13 percent for JF/USDT in just 24 hours, Be In Crypto writes.
It’s worth noting, however, that layer-two networks that are being rolled out by these exchanges
usually lack technical strengths as compared to their dedicated layer-two counterparts. The big difference is that the former has the upper hand in terms of access to assets, users, communities, and projects.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
