Immutable X and the NFT Marketplace
Cameron Tuths
Vitalik Buterin is the now-famous co-founder of the Ethereum network, which has become the premier proof of stake network in the decentralized finance world. This is because of its superior security and operability despite its known flaws. Trading and minting NFTs on Ethereum can be costly, especially when the network is busy. Users must pay higher gas prices to have their transactions processed swiftly, decreasing user profits. Minting transactions frequently fail, resulting in unnecessary losses. Because of these problems, Vitalik has said that “The Ethereum ecosystem is likely to be all-in on rollups as a scaling strategy”. These rollups help spread out the task load for a blockchain by taking off-chain trades, generating proof that these trades were valid, and then publishing that proof on-chain, where a smart contract verifies it. The blockchain can run more efficiently by not adding every transaction to the chain but instead grouping them into a single proof. Immutable X (IMX) is a layer-2 scaling solution for NFTs that uses the Ethereum blockchain network. Minting and trading NFTs offers near-zero gas fees and instantaneous trade confirmation, allowing Immutable X users to readily develop and trade NFTs without endangering their assets’ security. By using zero-knowledge rollups to confirm ownership without disclosing any information, Immutable X transactions’ superior privacy and security can be realized. Immutable X can process up to 9,000 transactions per second as opposed to Ethereum’s current rate of only 30 transactions per second.
Immutable X’s shared global NFT order book can help NFTs expand their liquidity and trading volume. NFTs can be bought and sold on any Immutable X-based marketplace using the IMX token, Immutable X’s native token. It’s a utility and governance token with 2 billion coins. Immutable X uses IMX to pay transaction fees and incentivize users and developers. IMX tokens can be earned by helping to grow the platform, by trading NFTs, and developing applications. IMX allows token holders to participate in reward pools and collect rewards as a utility token. They can also contribute to Immutable X’s governance by submitting and voting on community suggestions. The more IMX coins they own, the more votes they can cast.
Immutable X got a lot of publicity when they announced that they are the first carbon-neutral NFT scaling solution to hit the market. This is a big concern for the younger generation as well as many investors who are starting to become more carbon conscious. Immutable X also has a set of strong REST APIs that may be used to streamline complex blockchain interactions. Users can simply produce and transfer NFTs via API calls rather than directly interacting with smart contracts. Developers may easily incorporate the APIs and Wallet into their systems using Immutable X’s basic software development kits (SDKs). This will enable them to create NFT products like play-to-earn games in hours rather than weeks. Lastly, Immutable X provides a global order book that allows NFTs to be bought and sold on any marketplace that uses their scaling technologies to facilitate a third-party NFT marketplace ecosystem. This means that orders placed on one marketplace can be fulfilled on another, thereby boosting NFT trading volume and liquidity. All desktop Ethereum wallets are supported by Immutable X and users can trade NFTs across several NFT-enabled crypto wallets without having to move their assets between networks.
Immutable X uses layer-2 scaling technology to fill in the gaps in Ethereum NFT trading. It provides a platform for the growth of non-traditional enterprises, such as play-to-earn games and markets. As these markets expand the best of the rollups will too and Immutable X is in a great spot for this market shift.
Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. Please conduct your own due diligence before making any investment decisions.
References:
Martin Young – Yahoo News
Raisa Bruner – Are Environmentally-Friendly NFTs Possible? | Time