Immutable X is a scaling solution that is widely used for NFT projects on Ethereum. It has been designed to address issues around scalability and gas fees on the Ethereum network, allowing projects to launch quickly and affordably. Immutable X has its own cryptocurrency token that can be used to pay transaction charges, for staking, and to vote on the project’s future direction.
In this AAG Academy guide, we’ll explain Immutable X and its IMX token in more detail, and look at what makes the project unique. We’ll also highlight some popular projects built on IMX, and answer some frequently asked questions.
Immutable X is what’s known as a layer 2 scaling solution. This means that it is a blockchain network itself, but it operates on top of Ethereum, a layer 1 blockchain or ‘mainnet.’ Like many layer 2 solutions built for Ethereum, Immutable X was created to solve the network’s scalability issues and high gas fees, which have become an unwanted side effect of its popularity.
Immutable X’s key focus is to deliver a seamless trading platform for NFTs (non-fungible tokens). It takes advantage of the power of Ethereum and combines it with significantly faster transaction times, and near-zero gas fees for trading and minting. Its shared global order book also enhances NFT liquidity and increases trading volume.
In addition to offering the ability to mint millions of NFTs with very little effort, Immutable X offers APIs and SDKs that allow developers to build and launch Web3 games that are supported by the Immutable X blockchain no matter how big they might become. It also provides a wallet function with integrated credit card support.
Launched in 2018, Immutable X was created by brothers James and Robbie Ferguson, and Alex Connelly, three developers from Australia. The project has enjoyed outstanding support, with investment from the likes of Coinbase and Sam Bankman-Fried’s now defunct Almada Research that was key to bring Immutable X to market.
How does Immutable X work?
One of the key components of Immutable X is a scaling technology known as zero-knowledge rollup (ZK-rollup). It is used to validate transactions on the Ethereum blockchain, but instead of sending them individually, which would be inefficient, expensive, and time-consuming, ZK-rollup bundles hundreds of transactions together into a zero-knowledge proof.
The bundle is then submitted to the Ethereum mainnet and verified by a smart contract, so as far as the primary blockchain is concerned, it is essentially just one transaction. The complete record of transactions is held and maintained by Immutable X itself, and there’s no need for this to be passed back and forth between the mainnet.
This makes Immutable X significantly faster, more efficient, and more affordable than using Ethereum directly. It has the ability to facilitate up to 9,000 transactions every second, and all trading processes on the blockchain are 100% carbon-neutral. What’s more, its speed and scale mean that Immutable X is ideal not only for small startups, but also much larger projects.
Its REST APIs and SDKs, which we touched upon earlier, also play an important role in Immutable X’s operation. The APIs simplify blockchain interactions so that users can create and trade NFTs without having to deal with smart contracts, while the SDKs mean that developers interested in using Immutable X functionality in their applications can integrate it seamlessly.
Furthermore, Immutable X offers shared liquidity through a global order book. It allows orders to be filled through cross-market economies, essentially enabling NFTs to be bought and sold on any marketplace that implements the Immutable X scaling solution. This further increases the platform’s efficiency.
What is IMX?
IMX is Immutable X’s own ERC-20 cryptocurrency token. It can be earned by trading NFTs and building applications, and it is most commonly used to pay for transaction fees, though that is not all its good for. The IMX token can also be used for staking, and to participate in the governance of Immutable X by voting on potential changes and upgrades.
IMX is available from a wide range of centralized and decentralized cryptocurrency exchanges, including the likes of Binance, Coinbase, Kraken, Uniswap, and SushiSwap.
What makes Immutable X unique?
There are a couple of key things that make Immutable X somewhat unique — one of which is its focus on NFTs. While there are countless layer 2 scaling solutions for Ethereum, not many of them are built around NFTs in the same way Immutable X is. Immutable X is also much more extensive than most scaling solutions, thanks in large part to its APIs and SDKs.
It’s also important to note that while lots of layer 2 scaling solutions are actually designed to compete with Ethereum, that’s not Immutable X’s goal. It doesn’t just offer faster and more affordable cryptocurrency transactions; its platform is built specifically to improve the process of trading and minting NFTs. Its other advantages are just an added benefit.
Immutable X looks to have a very promising future. It is already an incredibly popular platform that is utilized by an impressive number of play-to-earn games. As long as that continues, it seems Immutable X, or its IMX token specifically, is a good investment.
However, it is important to note that all cryptocurrencies are volatile and that investing in them is risky. In addition, what makes a ‘good’ investment for one investor may not be a good investment for another who has a different investment strategy and goals. With that in mind, carry out your due diligence before investing in any crypto assets.
Immutable X was created by brothers James and Robbie Ferguson, and Alex Connelly, three developers from Australia. Read the article above from AAG Academy to find out more about the Immutable X project and its IMX cryptocurrency token.
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About the author
Senior content writer
Senior copywriter for AAG Marketing team with the focus of educating our community on all things web3, blockchain and Metaverse.
This article is intended to provide generalized information designed to educate a broad segment of the public; it does not give personalized investment, legal, or other business and professional advice. Before taking any action, you should always consult with your own financial, legal, tax, investment, or other professional for advice on matters that affect you and/or your business.