ImmutableX; Ethereum Layer 2 blockchain built for speed, scalability, and gamers

[TL；DR]

- ImmutableX is an open-source project that aims to build scalable and secure layer two solutions on top of the Ethereum network.

- ImmutableX is for decentralized applications on the Ethereum network. It allows developers to build their Dapps & games without worrying about scaling or security issues.

- the 20% network fee charged on the ImmutableX platform is pulled to the “staking rewards pool” & evenly distributed between participants who lock their IMX token.

- The immutableX IMX token is an ERC-20 token created for rewarding users’ activities on its platform.




Overview of ImmutableX and Ethereum Blockchain Network

Ethereum is a top Blockchain network that accommodates many solutions, DApps, and NFTs. However, it has suffered from scalability issues that have led to a significant gas fee rise. Although its long-awaited upgrade, the merge, took place recently, it is still on its way to offering low gas fee transactions & scalability as promised.

However, Several layer 2 solutions have cropped out over the years to tackle the problems Ethereum is faced with. ImmutableX protocol, a layer 2 solution, stands out with its mission to build fast NFTs & play-to-earn game platforms while leveraging on Ethereum’s strength.


What is ImmutableX

ImmutableX is a Layer 2 scaling solution built on the Ethereum blockchain. Its main purpose is to provide almost no gas expenses for NFT trading and minting. ImmutableX provides an NFT marketplace that addresses Ethereum’s scalability issue. Immutable X technology enables gas-free minting and trading without jeopardizing Ethereum’s security, the most widely utilized blockchain for NFTs worldwide. The system features include instant trade confirmation, huge scalability (up to 9,000 transactions per second), and excellent development and user experience.


Features of ImmutableX

Some of the amazing features of Immutable X layer 2 technology include the following;

Decentralized System
Holders of Immutable X can vote on governance proposals issued by other users under the decentralized governance model used by the platform. Decentralized governance’s best feature is that IMX holders can influence the platform’s roadmap and decide what fees will be assessed.

Provides a secure solution for Layer 2 Scaling
Every developer that utilizes Immutable X benefits from lightning-fast speeds, almost-zero gas costs, and the security that Ethereum offers as a Layer 2 scaling solution. Immutable X does not subtract anything from the Ethereum blockchain; rather, it is purely additive.

Liquidity and Order Book Shared
Immutable X provides shared liquidity through a shared order book that promotes protocol liquidity. Cross-market economies allow for the fulfillment of orders. As a result, bootstrapping and price discovery are strengthened. This technology enables the development of NFT markets without a back end.

Framework SDKs
Software development kits are provided to make it simple for developers to integrate directly into Immutable X. Support for all programming languages and development platforms, from Android and iOS to Unity, is at the top of this platform’s future road plan. Giving this assistance helps NFT initiatives to be created effectively.

Staking
The tokens acquired via a fee capture method are transferred to a bigger pool when staked using IMX. The pool is allocated to active stakers each month. The number of tokens a staker receives is determined by the amount of money they have staked. Your reward may vary depending on the governance protocols that have been followed. Layer 2 is used to distribute all rewards. If you wish to stake your IMX tokens successfully, you must do the following.

You should hold the token on a Layer 1 or 2 scaling solutions.
Every 30 days, either hold this token or complete a trade.
Every 30 days, vote on any governance protocol.


How does Immutable X works?

Immutable X utilizes the ERC-20 protocol built on the Ethereum network. Here is how IMX works:

Utilizes ZK-rollup technology
Immutable X is one of the first platforms to employ ZK-rollup technology and only works on NFT projects. It is also the core technology behind IMX. Rollups provide consumers with a good experience and scalability while maintaining a high level of security. This technique allows hundreds or thousands of transactions to be replicated for speedier validation.

IMX works using Zero-Knowledge Rollup (ZK-Rollup), a scaling method used to approve transactions in bulk. The batch is then verified & redeployed to the Ethereum mainnet. This process makes verifications and approvals occur rapidly without jeopardizing the security of the asset.

The layer for Abstraction API
The API abstraction layer, which wraps around the scaling engine and enables interaction with smart contracts on the part of developers, is another element of Immutable X. The API conforms to the layout of REST- representational state transfer architectural style. This feature makes faster project launches possible by helping new users establish themselves.

No gas costs
Transactions made using Immutable X rarely incur gas costs. With IMX tokens, around 20% of the protocol charge is paid. You may pay this charge in IMX tokens or another kind of money. However, users can own IMX tokens to conduct transactions using Immutable X.

Additionally, it facilitates around 9,000 transactions per second using carbon-neutral, which lowers gas cost and energy utilization.

Wallets With NFT Support:
Immutable X supports all Ethereum wallet types, so consumers are not required to move between different NFT marketplaces. Additionally, it offers an intermediary layer type called IMX Link that enables users to use a wallet experience solely focused on NFT projects. Immutable X also supports third-party NFT markets without posing any security problems.


Advantages of Immutable X

Some of the benefits of using ImmutableX layer 2 technology include the following;

It is simple to use: The Immutable X Web3 wallet supports the use of credit card payments, allowing access to the ecosystem for those who need to become more familiar with blockchain technology. According to Immutable, its “easy APIs and SDKs [enable] you to create and deploy quicker.”

It is a great benefit for Ethereum: The security of the Ethereum blockchain also benefits ImmutableX users. All information is finally validated on Ethereum, even though transactions and fees are executed at the Layer 2 level on Immutable X. The method also works with all desktop Ethereum wallets, so users do not have to change networks.

Speed and Cost: It is the first gas-free minting platform with instantaneous transaction speeds. Immutable X makes every attempt to appeal to gamers since it was designed with them in mind.

It allows for worldwide trading of NFTs: Anyone who lists their goods on the ImmutableX network has immediate access to the complete global order book for anyone who wishes to trade NFTs. This implies that listing an NFT on one ImmutableX marketplace causes it to be immediately included in all other ImmutableX marketplaces.


Disadvantages of ImmutableX

It is common knowledge that anything with benefits also has drawbacks. These are a few of Immutable X’s drawbacks, and they include;

The NXT and Ethereum blockchains may provide tough competition for the relatively young IMX blockchain in cryptocurrency.

Suppose the hype around NFT loses steam in the future. In that case, the IMX coin will find it difficult to draw investors, similar to many other crypto-based innovations and currencies susceptible to volatility, legislation, attitudes, and the like.


Conclusion

Every issue has a solution, and Immutable X is a Layer 2 scaling solution for Ethereum’s high gas charge issue regarding NFTs. By allowing staking and governance voting on Immutable X, IMX is a utility token that offers inherent value to anyone who holds it. If you’re considering buying IMX, be sure first to acquire a different cryptocurrency, such as Bitcoin, USDT, or Ethereum, which you can use to buy IMX.



Author - M. Olatunji, Gate.io Researcher
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