James Ferguson, a Forbes 30 Under 30 entrepreneur who formerly ran a software development team at a billion-dollar eCommerce firm, and his brother Robbie Ferguson, a Thiel fellow and Forbes 30 Under 30 entrepreneur, established Immutable X.
More than 100 people from various backgrounds, including blockchain, FAANG, finance, fintech, and management consulting, make up the team. In 2018, it raised a seed round, then in September 2019, it secured a $15 million Series A investment. Investors included some of the blockchain industry’s “who’s who,” including Coinbase, Naspers, Nirvana Capital, Apex Capital Partners, Continue Capital, and Galaxy Digital.
What Is Immutable X (IMX)?
Immutable X bills itself as Ethereum’s first layer-two scaling solution for NFTs. Immutable X claims that its blockchain overcomes Ethereum’s disadvantages such as limited scalability, a bad user experience, illiquidity, and a sluggish development experience. Instead, users enjoy rapid trading and vast scalability, as well as 0% gas expenses for minting and trading NFTs without jeopardizing user or asset security. Immutable X is constructed utilizing STARK zk-rollups to do this, a technique on which Vitalik Buterin believes Ethereum is “all-in.”
Users will be able to produce and distribute assets like ERC-20 and ERC-721 tokens on a large scale thanks to this technology. Chris Clay, the game Director of Gods Unchained, a project already built on Immutable X, noted that Immutable X allows Gods Unchained to develop a hitherto inconceivable meta-system. In this way, Immutable X aspires to provide a world-class experience for both consumers and developers.
What Makes Immutable X So Special?
Immutable X has the advantage of being one of the first layer-two systems to use zk-rollups and focus solely on NFTs. With zk-rollups becoming more popular as a scaling option, the project is at the forefront of development in the Ethereum ecosystem. Immutable X has a decent possibility of becoming the default “NFT blockchain” in the future, assuming it can meet its claimed transaction speed of more than 9,000 tps.
The API abstraction layer is a critical component in delivering on this promise. Every NFT-related interaction, including minting, trading, and transferring, is now a simple API call on Immutable X, thanks to REST APIs. This, according to the business, will be a significant component in drawing new entrants such as major gaming and content companies in the field.
Furthermore, while linking their wallets, users will not have to switch networks. The protocol also includes an intermediary layer known as the “Link,” which enables an NFT-specific wallet experience and allows Immutable X to support a third-party marketplace environment without exposing itself to security issues.
NFT markets may be constructed on Immutable X without a backend thanks to its shared global order book, which facilitates protocol liquidity. As a result, third-party marketplace solutions can coexist with the core marketplace of the protocol. With this option, the protocol also hopes to lessen the barriers to entry for content providers and smaller developers.
How does Immutable X work?
Immutable X uses the ZK Rollup approach to overcome Ethereum’s scalability problem, allowing transactions to be completed in the following steps:
- Hundreds of thousands of deals will be batch-processed off-chain.
- The deals will be signed by the asset owners.
- All of these off-chain exchanges will be brought onto the blockchain in a single proof.
- This single proof will be validated on-chain via a smart contract.
This approach allows Immutable X to condense thousands of off-chain deals into a single transaction on-chain at a constant gas cost. As a result, Immutable X can promise ultra-fast transactions and no trading gas expenses.
Immutable X has its own marketplace in addition to being a chain for NFT applications to launch on. The goal of this marketplace is to decrease the entrance barrier for small content providers or developers that lack the means to build their own trading experience. Immutable X assures that consumers and developers will always have a place to trade on.
Is Immutable X (IMX) a good investment?
Immutable X’s success as an NFT marketplace may be impacted by a declining trend in the NFT market.
However, we do not sure how long this decline in interest in NFT will endure. There is still a surge in the number of NFT projects on several new tier 1 blockchains (Terra, Near,…), and we have lately witnessed innovation in NFTs known as interactive NFTs, driving demand for NFTs by providing more use cases for them.
As a result, we still need more time to correctly assess the market’s potential.
Aside from that, if the NFT and gaming markets take off, the Immutable X infrastructure will be poised to capitalize on the expansion of this major trend. Because Immutable X is based on Ethereum, it benefits from the network impact of the leading chain. Furthermore, Immutable X’s ultra-fast speed and zero gas fee are the platform’s other two selling points for both NFT project builders and users.