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Immutable X: Meet the First Layer 2 Scaling Solution for NFTs on Ethereum

Immutable_X_Meet_the_First_Layer_2_Scaling_Solution_for_NFTs_on

As the Ethereum ecosystem grows, impeding problems continually emerge despite the layer 1 scaling solution in place. Some of these problems apply in the areas of speed of transactions and gas fees.

Notice that the Ethereum network continually gets clogged up due to nascent integrations and protocols from DeFi and decentralized apps running smart contracts on it. This causes slower transactions as well as outrageous gas fees.

In the NFT industry, it has caused some level of discouragement among artists, who are forced to pay this high fee when minting digital assets. Besides, the transaction uptimes are nearly as slow as snails.

However, there is good news to smile about. With the introduction of Immutable X, a layer 2 scaling solution, there is light at the end of the tunnel in the NFT ecosystem. The core values of the blockchain universe are also coming to fruition.

 Immutable X

What Is Immutable X?

Remember Gods Unchained? It is a popular NFT card game in the NFT space. Immutable, an Australian-based company launched the game and saw its success among gamers and crypto enthusiasts.

Now, the same company stepped up to solve the scaling problems seen with the Ethereum blockchain. Instead of building something different, the Immutable team decided to continue with the secure and decentralized foundation already set by the Ethereum network.

Immutable X brings a lot to the table, and you wouldn’t want to miss out on what it has in store for the NFT and blockchain ecosystem in general. Continue reading to discover more.

How Does Immutable X Solve Scalability Problems on the Ethereum Blockchain?

First, Immutable X allows creators to build intuitive marketplaces, games, and decentralized apps that require zero gas fees to confirm transactions and have a throughput of over 9,000 trades per second.

As a layer 2 scaling solution, it absorbs the layer 1 security and validatory protocols to secure user information and funds in private keys and validates transactions easily.

Also, the Immutable X platform is eco-friendly. It allows digital artists and developers to run protocols on the Ethereum blockchain without fear of compromising nature as with Bitcoin and preceding Ethereum protocols.

Key Features of Immutable X

As mentioned earlier, Immutable X brings a lot to the table, and we will discuss some of its offerings and features in detail in this section. To add on, the platform will incorporate more features subsequently, so ensure to check on their website.

Immutable X Marketplace

The Immutable X marketplace comprises different platforms and exchanges built on Ethereum’s protocol. The platform allows for the interoperability of these exchanges and marketplaces in one place.

This means that these platforms can host, run transactions, and still interact among themselves without needing alternative forms of linkup all from one position. The Immutable X marketplace comes with many incentives, which include:

  • Users can develop their unique marketplaces and trading platforms through Immutable X.
  • Users earn royalties when they sell assets on the secondary market.
  • Users own the entire front-end protocols for the applications or platforms they create on Immutable X.
  • Applications built on Immutable X are not only scalable but can be customized to suit user demands.
  • Users without in-depth knowledge of blockchain technology can build UX-friendly decentralized applications and secure exchanges that work fully well without glitches.
Key Features of Immutable X

IMX Token

The IMX token is Immutable X’s utility token for powering the platform’s protocol. It is an ERC-20 token and supports the minting of NFTs for the layer 2 scaling protocol on Ethereum.

With the IMX token, users can participate in future decision-making, and governance protocols on Immutable X. Users can also provide liquidity through staking and earn ample rewards.

NFT trades plus Immutable X’s partnership has led to the creation and distribution of over $20 million worth of IMX in the crypto market. Some of the use cases of the IMX token are:

  • Through Fees: You are charged a 20% fee for every trade you make on Immutable X. You pay these fees using the IMX token. If you do not possess the token, it is automatically purchased using the ETH you hold in your wallet.
  • Governance protocols: You qualify to participate in DAO governance protocols of Immutable X if you hold the IMX token. Your voting right is dependent on how many IMX tokens you hold.
  • Staking: PoS consensus is an alternative way to earn on Immutable X. The more IMX tokens you hold, the more rewards you earn.

Some of the ways you can earn the IMX token include:

  • By direct purchase of the token on an exchange.
  • Through participating in incentivized programs on Immutable X, such as the Play-to-Earn campaign.
  • By holding the token to earn more tokens.
  • And lastly, by performing tasks such as holding NFTs, trading NFTs, Depositing NFTs, and building applications on the platform.

Play to Earn

Play to Earn is an incentivized offering by Immutable X to reward loyal users and promoters of the platform. Eligible participants are the early birds on the platform who have been phenomenal in pushing Immutable X to new heights, including those who are active holders of the Gods Unchained NFT.

They could earn up to 600,000 worth of the IMX token. The Play-to-Earn element has two segments in which you could participate and earn rewards in all. The first segment is open to early birds and holders of the Gods Unchained NFT in their Immutable X wallet before a set period.

However, the players must complete all the 3 tasks to win a 100,000 IMX token prize that Immutable X will share among all the participants. The 3 tasks are :

  • The player must have played the Gods Unchained game at least once before the Alpha Reward period ends.
  • Must link your wallet to your Gods Unchained account as well as your Immutable X account before the Alpha Reward period is over.
  • Must hold at least 1 Gods Unchained NFT before July 22, 2021.

The second segment is called the Alpha Rewards and is open to all participants provided you complete the 3 tasks set by the platform.

The reward is a 400,000 IMX token prize which the platform will also distribute equally among participants. The 3 tasks include:

  • The player must play the Gods Unchained game at least once.
  • Connect your wallet to your Immutable X platform.
  • Hold at least 1 Gods Unchained token in your Immutable X wallet.

Stay updated to know when the platform announces the snapshot for the prize to avoid missing out on rewards as a loyal user.

ZK-Rollup System

The ZK-rollup system is a layer 2 scaling technique that Immutable X uses to execute thousands of transactions simultaneously. The system has been active since 2020, and Immutable X employs it to facilitate NFT transactions on Ethereum.

API Drive

To create automated and intuitive DApps, Immutable X makes it easy for developers to integrate scalable features from its wealth of resources and build apps from the platform’s API without needing blockchain configurations, new libraries, languages, or smart contracts.

Immutable X and the Future of NFTs

Non-Fungible Tokens (NFTs) have surged beyond unimaginable height, but critics have called it a bubble following its sudden decline in adoption among crypto enthusiasts and digital creators.

However, the critics have attributed its sudden decline to the aforementioned scalability problems prevalent with Ethereum’s blockchain. Immutable X comes in to provide respite to these impeding problems by offering to facilitate NFT appraisal, distribution, and use in the crypto market.

Its incentivized model makes minting and trading NFTs more interactive and interesting because digital creators and collectors are involved in the process, ensuring that creators mint valuable NFTs often.

The Immutable X team comprises members from the Immutable company who actively contribute to blockchain innovations and NFTs worthiness. The key members having a long history in the NFT and tech ecosystem, coupled with the popular Gods Unchained game, spells a great future for the project and NFTs in general.

Conclusion

It is evident that with an offering like Immutable X, progress and a greater future await the blockchain ecosystem in totality, which would pave the way for even greater scalable solutions for the crypto and NFT ecosystems in general.

Upholding the model already set by Ethereum shows solidarity and togetherness in the blockchain ecosystem. An inspiration for upcoming projects and innovations to mimic to build a solid blockchain foundation in the DeFi community.

With over $15 million raised in seed rounds and funding, Immutable X is well-funded to keep the project’s stone rolling. Key investors in the project include Coinbase, Nirvana Capital, Apex Capital, Naspers, among others.

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