Is IMX Ready To Roll? Complete Overview of Immutable X
NFTs are great, but gas fees sure ain’t. But what if there was a layer 2 protocol that could solve that problem, one built specifically for NFTs? There is one and it’s called Immutable X (IMX).
What is Immutable X?
Immutable X is the first ZK Rollup based layer 2 scaling solution for NFTs on Ethereum (ETH). It’s a solution to the high gas fees and scalability issues that traders are experiencing on the Ethereum network when minting and trading NFTs.
Ethereum’s current underlying proof-of-work architecture can only process 10 to 15 transactions per second and it cannot withstand the amount of trading demand. This is where Immutable X comes in to solve the problem.
Why build on Ethereum?
Despite Ethereum’s dominance in the market overall and the clear demand for NFTs. Ethereum inherently has some substantial hurdles to overcome in order to be the ultimate NFT platform, which can scale to a global audience and withstand that level of transaction volume and this is precisely where Immutable X comes in.
Immutable X believes that NFT users and developers shouldn’t have to choose between either the security or the network effect of Ethereum. Immutable X has implemented a new layer 2 scaling solution that combines NFT specific exchange and proof logic with a sophisticated roll-up technology developed by Starkware called StarkX.
Immutable X Architecture
The core architecture of Immutable X relies on what is called ZK Roll-up scaling engine. This is a collective term used for blockchain solutions designed to help scale an application by handling and processing transactions off of the layer 1 Ethereum mainnet in order to boost functionality and network efficiency.
ZK roll-ups bundle hundreds of transactions off-chain and generate a cryptographic proof of validity for those transactions known as a succinct non-interactive argument of knowledge or SNARKs. ZK roll-up smart contracts verify that the transactions rolled-up on layer 2 are legitimate.
ZK roll-up technology is called a STARK proof or succinct transparent argument of knowledge as opposed to the more commonly used SNARKs. ZK roll-up technology can deliver scalability gains of up to 9,000 transactions per second by implementing its STARK system.
Key usability advantages
The usability developers looking to mint NFTs on its platform can do so directly on layer 2 while also maintaining the security of layer 1 Ethereum.
Users looking to trade nfts on Immutable X will require a specialized key pair called a STARK key pair.
Immutable X has developed a trustless layer called LINK to act as the medium between any Ethereum wallet and the Immutable X protocol.
Immutable X provides users with a shared global order book to enhance protocol liquidity. This allows NFT marketplaces built on Immutable X to gain access to sustained amounts of underlying liquidity.
Unlike most blockchain protocols, Immutable X currently supports all Ethereum desktop wallets without forcing users to switch networks or limiting them to the application of one single wallet allowing for the creation of a thriving third-party NFT marketplace ecosystem.
Immutable X Marketplace
Immutable X has developed its own in-house NFT marketplace. This marketplace can be accessed through the official website portal.
Users can buy sell and hold NFTs without custodial risk. What’s required to do so is an Ethereum desktop wallet some ETH, USDC, or IMX.
Immutable X takes a protocol fee for its integration but it does allow users to set their own custom royalty fees and these customization features are a major plus especially. Immutable X takes a 2% fee on all primary sales which are pretty reasonable when compared to some of the fees on other existing NFT markets in the space. It also allows creators to set a royalty of up to 10% on all NFT transfers.
Immutable X Partnerships
One of the most eye-catching collections listed on the marketplace is the tick-tock top moments collection. This is an NFT collection led and designed by some of its community-defining creators.
Instagram has just announced that it intends to explore and potentially enter the NFT ecosystem to reward its creator community. Immutable X is a bright candidate because of its scaling functionalities carbon neutrality and institutional financial backing.
Another noteworthy partnership is the one between Immutable X and the digital collectibles marketplace Veve.
OpenSea announced that it would integrate Immutable X in its NFT marketplace.
Coinbase Ventures invested heavily in Immutable X and this inevitably leads me to the assumption that Coinbase may want to incorporate and leverage Immutable X’s scalability features for the expansion of its very own NFT ecosystem.
IMX is an ERC20 utility token primarily built for the purposes of rewarding pro network activities on immutable x.
IMX has three main utilities: it’s used for fee staking and decentralized governance. Users aren’t technically required to hold IMX tokens in order to trade on the Immutable X NFT marketplace. IMX token acts as an entry ticket to the ecosystem’s decentralized governance voting structure.
IMX has a total supply of 2 billion tokens with the tokens being created issued and distributed by digital world nfts a partner of Immutable X.
IMX has a current circulating supply of 188 million tokens. the token is currently listed on some of the most liquidity-rich and well-established exchanges such as Coinbase Kucoin and FTX. IMX currently sits at a fully diluted market cap of over nine billion dollars.
Immutable X Challenges
Other existing scaling solutions could very well come to challenge Immutable X’s future adoption in the space. This is a challenge that all layer 2s face and not just those built for NFTs.
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