- 11 Mar, 23
Immutable X (IMX) 101: Faster and Cheaper NFT Solution
It has been over 10 years since the launch of Bitcoin, the first cryptocurrency, which paved the way for numerous digital currencies that eliminate the need for central banks and financial institutions. However, the evolution of the crypto market did not stop there. It quickly developed and obtained new use cases such as stablecoins, DeFi, and NFTs. These assets, including Immutable X (IMX), make up a significant portion of portfolios in various financial fields.
NFTs have created new opportunities for users and have become extremely popular among the younger generation. Over time, NFTs have become the favourite investment tool for global celebrities in various areas such as music, sports, and entertainment. They enable users to own art, products, signatures, and many other things. NFTs, built on blockchain technology, offer owners the opportunity to earn huge profits, and Immutable X (IMX) is an NFT platform. In this article of Zatrun.com, we will explain what you need to know about this project.
Table of Contents
What is Immutable X (IMX) and How Does It Work?
Immutable X was created to increase the scalability level of the Ethereum blockchain and provide benefits to NFT projects. Currently, the project serves as a layer-2 scaling solution for NFT collections running on Ethereum, which is highly popular in the industry. This provides users with a comprehensive package for NFT printing and trading, offering speed, time, and cost savings for NFT enthusiasts. The platform also provides convenience for users in areas such as NFT printing and trading.
Immutable X’s interface includes features such as zero gas fees, carbon neutrality, and 9000 transactions per second (TPS). Additionally, the project allows for instant access and integration with transactions, games, and applications. Achieving the mentioned TPS rate is one of the most important goals set by the Immutable X crypto portal. Currently, the team is constantly improving to meet predetermined targets.
The scaling technology called Zero-Knowledge Rollup (ZKRollup) is at the heart of Immutable X. Thanks to this technology, the platform can quickly verify transactions as a layer-2 protocol on the Ethereum blockchain. ZKRollup merges all transaction data into a separate layer rather than adding it to the blockchain. This enables it to provide extremely high speeds and low costs, particularly for users who engage in NFT transactions.
The API abstraction layer is also an essential component in the widespread adoption of Immutable X. This allows users to connect their wallets without having to switch between networks. The use of REST APIs also simplifies blockchain interactions. Users can design and trade NFTs directly through APIs without the need for direct interaction with smart contracts. In addition, the platform offers software development products in the Web3 and gaming sectors.
Is IMX a Good Investment?
IMX is an ERC-20 token that serves as the native currency of the Immutable X ecosystem. With a total supply of 2 billion, this cryptocurrency is used as a utility and governance token within the network. Users can benefit from IMX coin for purposes such as application development and NFT trading. The asset facilitates paying gas fees and incentivizes users. On the network that operates with a Proof-of-Stake mechanism, users can earn passive income by staking their IMX coins. They can also use it to participate in the platform’s governance.
Despite providing its users with high transaction speeds of 9,000 TPS, IMX coin has lost value recently. The token, which was trading at $9.31 in November 2021, now has a unit price of $0.81. However, the platform is currently ranked 60th according to CoinMarketCap data. Therefore, it can be said that the recent price drop is related to the overall market. The project’s market capitalization is currently around $690 million. However, the future of the advantages that Immutable X offers for NFTs and blockchain games is uncertain.
So far, 58.6 million NFTs have been minted on the platform, and this number is increasing every day. However, Ethereum transitioned to a Proof-of-Stake mechanism in September 2022 with the Merge upgrade. Therefore, some experts believe that Ethereum will solve problems such as network congestion in the future. If this happens, IMX coin will lose its primary use case. However, some argue that the Ethereum upgrade will further expand layer-2 solutions. Therefore, investors need to continuously monitor the market.