As the Web 3.0 space is expanding rapidly, many innovative solutions have come to the forefront to neutralize the present deficiencies. Immutable X is one such scaling solution directed to optimize the NFTs trading and gaming experience for users. In this article, we will delve deeper into Immutable X, understand its key technologies, and how it is making a difference in the blockchain industry.
What is Immutable X?
Immutable X is a platform that offers layer-2 scaling solutions for NFT projects on the layer-1 Ethereum blockchain. It provides APIs and developer tools that simplify the process of constructing on layer 2. Simply put, Immutable X targets to equip developers with the ability to create high-speed, flexible, and secure applications for NFTs and blockchain games.
This layer-2 platform is specifically crafted to address the scalability and gas-fee issues of the Ethereum blockchain which has long been a hallmark of decentralization and security. With Immutable X, smart contracts and dApps can be built on Ethereum without any risk of downtime or external interruption, and near-zero gas fees.
What can be hosted on Immutable X?
The founders James Ferguson, Robbie Ferguson, and Alex Connolly established Immutable X in 2018 with the aim of reducing the costs involved in NFT trading for Gods Unchained, a game developed by Immutable. Now, Immutable X hosts a number of Web3 games, collectibles, and dApps, backed by a secure, cost-efficient, and frictionless ecosystem. For instance, its popular games include Ember Sword, Illuvium, and Guild of Guardians among several others.
As per the official documentation of Immutable X, the scaling solution can support several types of applications for NFTs and blockchain games. For example:
- Games with sophisticated economies: Immutable X can facilitate free minting of game assets, fast & cheap in-game transactions, self-custodial wallets to establish true ownership of in-game items, and a global orderbook.
- Token and asset trading platforms: With Immutable X, developers can ensure maximum liquidity through global orderbooks as well as secure & cheap trades between users.
- Blockchain transaction analysis tools: Immutable X makes the data on past transactions, trades, and other behaviors easily accessible via APIs.
Immutable X core technologies: How does it work?
Immutable X primarily relies on Zero-Knowledge Rollup, which is a cutting-edge scaling technology curated by StarkWare. Zk-Rollup is a layer-2 framework for swiftly & securely validating transactions on the Ethereum blockchain.
This technology involves combining multiple-transactions data into one bundle and deploying them on the blockchain rather than adding each one of them individually. The off-chain transaction batches serve as a zk-STARK proof, which stands for zero-knowledge scalable transparent arguments of knowledge. As this technique verifies the authenticity of specific data without exposing the internal details, it is the foundation of Immutable X. By doing so, this technique not only bolsters the security of Immutable X transactions to new heights but also enables rapid block validation due to the less amount of involved data.
Once the zero-knowledge proof (of bundled transactions) is delivered to the blockchain, it is finally confirmed by a smart contract. Know that the transfer of transactions from layer-2 to layer-1 is quite simplified with the Zk-rollup, as the “zk-STARK proof” produced and authorized by it has already confirmed the transactions.
Moreover, Immutable X incorporates an API abstraction layer to allow the developers easily transfer and design NFT projects without directly interacting with the smart contracts. In other words, its suite of REST (representational state transfer architectural style) APIs streamline complicated blockchain transactions and allow for simple API calls to mint and exchange NFTs.
Note that Immutable X extends a range of software development kits (SDKs) for different programming languages and frameworks, helping the developers to unleash their creativity and execute both simple and complex tasks. The platform offers two types of SDKs: Core SDKs and User Wallet Interaction SDKs. The Core SDKs are the muscle behind most of Immutable X’s features, while the User Wallet Interaction SDKs allow applications to facilitate “user transactions” by connecting with user wallets across multiple platforms.
Key benefits of Immutable X
As a Layer-2 protocol, Immutable X stands out with its amazing scalability essentially achieved by the Zk-rollup technology. Immutable also furnishes lower requirements of computing and storage resources to validate each block – hence boasts an impressive transaction processing capacity of up to 9,000 transactions per second. On the user end, Immutable X poses as a highly cost-effective platform where the participants benefit from a zero gas-fee transactions experience.
Moreover, Immutable X recognizes that diversification is key to enhancing NFT liquidity. Unlike regular NFT scaling solutions, Immutable X offers a shared orderbook to enhance protocol liquidity, allowing users to generate orders on one marketplace and complete them on another.
Furthermore, this protocol Incorporates similar strengths to that of the Ethereum platform, including its robust security structure. The protocol is also compatible with all desktop Ethereum wallets, eliminating the need for users to switch networks constantly.
The platform also ensures 100% carbon neutrality on NFTs trading and integrates a superior scaling technology that can handle the growth of games regardless of their size.
What is an IMX token?
IMX is a native, ECR-20 token of Immutable X, used for paying transactions, voting, and staking on the platform. The utility token of Immutable X can be obtained through various means that contribute to the platform’s development, such as engaging in NFT trading or developing applications utilizing this Layer-2 solution.
IMX has a total supply of 2 billion which has been minted and distributed by Digital Worlds NFTs Ltd. As per IMX tokenomics, the token distribution is spread out among 5 sectors:
- Foundation Reserve
- Public Sales
- Private Sales
- Project Development
- Ecosystem Development
It is noteworthy that the platform assimilates a methodological staking system with fixed cycles and rewards. In order to participate in staking, individuals are required to possess an IMX wallet/L-2 wallet and maintain a minimum of 10 IMX tokens on L2 throughout the entire cycle. Furthermore, they are obligated to execute at least one NFT trade using the Immutable X order book during the cycle.
The timings of the staking cycles are specified by the platform while the rewards can be estimated from the staking rewards calculator.
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