Immutable X or IMX Explained
A platform called Immutable X has been developed as a scaling solution for NFTs on Ethereum. This allows users to instantly confirm trades with almost no gas fees required for minting or trading NFTs. Furthermore, this can be accomplished without compromising the safety of the user's assets.
Immutable X implements a Zero-Knowledge Rollup engine to achieve scalability. This engine is capable of supporting up to 9,000 transactions per second. The platform's global NFT order book enhances liquidity for NFTs and can boost their trading volume. Additionally, NFTs can be traded on any marketplaces that operate on Immutable X.
IMX serves as a utility and governance token in the ERC-20 format. Users can use IMX tokens to pay transaction fees and incentivize developers and other users on the platform. Holders of IMX tokens can earn rewards by participating in the platform's governance and staking.
During periods of high traffic, the cost of trading and minting NFTs on Ethereum can be high. To have their transactions confirmed quickly, users are often required to pay more for gas fees. There is also a high chance of failure during minting transactions, which can result in significant losses.
What Is the Immutable X Solution?
Founded in 2018 by James Ferguson, Robbie Ferguson, and Alex Connolly, Immutable X is a layer-2 scaling solution designed to enhance the scalability and user experience of Ethereum. This solution facilitates instant transaction confirmation and minimal gas fees for minting and trading NFTs. Users can easily create and trade ERC-721 and ERC-20 tokens at a reduced cost without compromising the safety of their assets.
How Does It Work?
Zero-Knowledge Rollup (ZK-Rollup) is at the core of Immutable X, a layer-2 protocol for validating transactions on Ethereum. This technology enables batching of hundreds of transactions into a single zk-STARK proof, which is then submitted to the blockchain and verified by a smart contract. The proof doesn't contain all the data of each transaction, and this is how Immutable X can facilitate up to 9,000 transactions per second with reduced gas fees. Users enjoy zero gas fees, and the transactions have increased privacy and security levels.
Immutable X is a carbon-neutral NFT platform. Minting 8 million NFT trading cards for Gods Unchained would consume approximately 490 million kWh on Ethereum, but only 1,030 kWh on Immutable X, which is 475,000 times less energy consumption. The remaining energy consumption is offset by carbon credits.
In addition, Immutable X provides a powerful set of REST APIs to simplify complex blockchain interactions. These APIs, combined with the platform's simple SDKs, enable developers to integrate NFT projects such as play-to-earn games into their platforms in just a few hours.
To facilitate a third-party NFT marketplace ecosystem, Immutable X offers a global order book, enabling users to buy and sell NFTs on any marketplace implementing their scaling solutions. This increases the trading volume and liquidity of NFTs. Immutable X also supports all desktop Ethereum wallets, allowing users to seamlessly trade NFTs across different NFT-enabled crypto wallets without moving their assets across networks.
What Is an IMX Token?
Immutable X has its native token called IMX. It’s an ERC-20 governance and utility token with a total supply of 2 billion. The token has several use cases such as paying transaction fees, incentivizing users and developers, and rewarding token holders through staking in reward pools. Users can earn IMX tokens by contributing to the growth of Immutable X, such as by trading NFTs and building applications.
IMX token holders have the opportunity to participate in the governance of Immutable X. They can submit and vote on community proposals. The more IMX coins they hold, the higher their voting power. Additionally, they can earn rewards through staking in reward pools. As a utility token, IMX serves as a means of exchange within the Immutable X ecosystem.
Immutable X provides a platform for NFT businesses to expand by utilizing layer-2 scaling technology to address Ethereum's NFT trading limitations. This technology enables play-to-earn games and marketplaces to thrive by offering efficient transaction processing and reduced gas fees.