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What is Immutable X?
Immutable X is Ethereum’s first ZK-rollup Layer 2 protocol for trading and transferring NFTs with instant trade confirmations, zero gas fees, and huge scalability, as it can hold up to 9,000 transactions per second. Immutable X does all these without compromising user ownership. The protocol is built by Starkware using the StarEx technology. Essentially, StarEx enables the execution of transactions outside the blockchain (on Layer 2), updates them then proves them back to the main chain.
The protocol aims to make the minting and trading of NFTs easier than traditional digital assets. Immutable X does not necessarily compete with Ethereum but is a Layer 2 scaling solution that leverages the security and power of Ethereum.
Features of IMX
Security and compatibility
Users can use their existing digital wallets when they join this platform. As a user, you don’t need to do anything because the private key that powers this protocol is generated by your existing wallet. Users can simply use popular wallets such as Metamask or anything that suits them.
Liquidity in blockchain simply means the ease of buying and selling any asset for a reasonable price. Immutable X makes this a reality. It even gets better as you can create virtual fungible markets based on the subset of the tokens’ features.
A perfect example is when you have an NFT known as Rare Quick Quail VeeFriends, you can search for the NFT using any of the 3 words. Immutable X also allows you to list the NFT in different marketplaces simultaneously based on a single trait. You can then get the most liquidity and maximum exposure when your assets are listed in different markets.
Immutable X teamed up with StarkWare to allow the execution of massive trades off-chain. Users sign for the transactions, which are put on-chain in a single proof that compresses various trades into a single transaction. All this is done at a fixed gas cost that Immutable X pays. As a user, you pay zero gas fees for trading NFTs as long as you are using Immutable X.
Immutable X for developers
Immutable X makes it easy for developers to create and mint NFTs. Essentially, you can program the protocol to mint a certain number of NFTs (X) with a given scarcity (Y). The same developers can implement complex logic in a scalable way through Kyro.
On-chain validity-based proof
The protocol uses validity-based proof, which implies that your digital assets can never be traded without your permission, basically the same security measure on the Ethereum mainchain.
$IMX is the native ERC-20 utility token of this protocol. These tokens are capped at a fixed supply of 2,000,000,000. The following are some of the use cases of IMX:
- Fees. 20% of each transaction on the protocol shall be settled in $IMX. However, if the user does not own IMX tokens, then these tokens will be automatically purchased using Ethereum, thus creating a frictionless user experience.
- Staking. All IMX tokens used to settle transaction fees are sent to a staking reward pool. The pool is distributed among current users who stake $IMX.
- Governance. Active members of this protocol have $IMX-weighted votes to determine the future of this protocol.
ESL Gaming, one of the world’s leading esports companies, announced a partnership with Immutable X in late October 2021. ESL Gaming intends to develop NFTs through Immutable X as it seeks to power carbon neutral and gas-free trading of NFTs of the ESL Pro Tour.
ESL Gaming intends to create a robust NFT platform where esports enthusiasts and supporters worldwide can exchange, buy and sell NFT assets on ESL Pro Tour. This partnership ensures that ESL Gaming gets the needed scaling infrastructure.
The soon-to-be-released MMOPRG will be migrating from Polygon to Immutable X as the company seeks to meet its massive NFT scaling needs. Immutable X is expected to power 48,000 Ember Sword NFTs by the end of the year.
Ember Sword, which is a creation of Bright Star Studios, was originally built on Polygon. However, the company has conducted further research and found that the platform might not meet its scaling needs. Immutable X will offer Ember Sword instant trade confirmations, zero gas fees, and 9,000 TPS.
Ember Sword is already attracting gamers, with more than 35,000 of them pledging over $203 million to purchase virtual lands. The game also comes with a native token, Ember, which governs it.
Immutable X announced in a tweet in March 2021 that it would be integrating with OpenSea, an NFT marketplace. The press statement stated that “users will enjoy the gas-free trading experience without sacrificing the Ethereum network’s security”.
According to Gotham Magazine, TikTok has announced its first NFT collection set to drop on Ethereum and powered by Immutable X. Dubbed “TikTok Top Moments,” the collection pairs some of TikTok’s top creators with cutting-edge NFT artists, including Lil Nas X, Grimes and more.
“The creation that happens on TikTok helps drive culture and starts trends beyond the platform,” TikTok Global Head of Marketing Nick Tran states in a press release. “As the creator economy continues to grow, we’re continually looking for new and differentiated ways to support our creators. Now, fans can own a moment on TikTok that helped shape the internet while supporting some of their favorite creators.”
As of this writing, Immutable X has raised $42.5 million from 3 funding rounds. The following are some of the most notable investors:
Naspers Ventures is a part of Naspers, which is a global internet company. Naspers Ventures partners with entrepreneurs to help build leading tech companies in high-growth markets. The company looks for founders and entrepreneurs that have high potential and scale globally.
Galaxy EOS VC Fund
Galaxy Digital and Block.one partnered to launch the $325 million Galaxy EOS VC Fund, simply known as the “Fund”. The Fund identifies interactive entertainment platforms and seeks to promote the adoption of blockchain technology globally while still building on the EOSIO ecosystem.
The company has so far made three investments, with one being a lead investor. BITKRAFT Ventures identifies itself as an early-stage investment platform for esports, gaming, and interactive media.
Immutable X is a solution that compliments Ethereum rather than competing with it. The fact that Immutable X is a layer 2 on Ethereum ensures that users can still benefit from Ethereum’s security as they conduct gas-free trades, enjoy high liquidity and scalability.