Diving Into Immutable: An NFT Layer 2 Protocol To Rewrite Scalability
Note: not a paid/sponsored post. I am not affiliated with Immutable. Beyond being a fellow Aussie.
I am incredibly bullish on Layer 2.
Layer 2 platforms execute transactions on the Ethereum main chain using a variety of tools, and their major goal is to improve the effectiveness and flexibility of on-chain apps. Ethereum has its constraints and requirements, and development progress, and future milestones, aside, we are not going to approximate any level of mainstream use or adoption if we aren’t able to address crushing gas fees, carbon emissions, complexities, congestion, and inaccessibility.
Immutable X is a promising contribution to the potential for mainstream adoption of tokenization. It’s a one-of-a-kind platform built on Ethereum. Immutable is developing a global back-end for non-fungible token transactions.
Since the Ethereum scalability problem begins with NFTs, Immutable X solves it by rewriting [dramatically increasing] blockchain capacity to allow 100 million+ high-impact transactions per second. This will enable a smart contract ecosystem at scale, which is required for mainstream adoption.
It also comes with several features that appeal to consumers and allow client partners to establish marketplaces, applications, games, and other products.
The organization launched Gods Unchained, one of the most well-known blockchain card games created by Chris Clay, who previously ran the Magic: The Gathering Arena. It’s a promising sign of Immutable’s gaming pedigree and their ability to grok gaming as an early scaling use case for tokenization.
The platform is user-friendly, highly secure, thoroughly tested with no known vulnerabilities, and has the capacity for widespread adoption through consumer applications.
It works by off-chain transactions between users, which are then written to the blockchain. Immutable X requires no gas fees beyond the Ethereum transaction costs because it doesn’t need to stress or congest the network due to its off-chain capabilities.
Carbon-neutral NFT transactions are also possible thanks to Immutable. You can use NFTs without harming the environment, a growing complaint against Web3 architecture and movements.
This, to me, is a huge factor in judging and appraising a Layer 2 protocol. I oppose organizations that are formed without a track record of success, don’t have clear provenance, and are not identifiable as the originators of the technology.
Immutable passes this test. The platform was established in 2018 by brothers Robbie Ferguson, 24, and James Ferguson, 29.
Immutable’s team are recognizable faces in the ecosystem. They have a strong track record of leadership in the blockchain space working on NFTs over the last two years. This has allowed them to build out a unique product while validating the value of NFTs, which is something they can use to establish themselves in the space.
While tradfinance isn’t necessarily infallible social proof, the VC bets on the platform demonstrate its trust factor through due diligence. Immutable has recently completed an $82m raise, demonstrating belief in the protocol.
Co-led by Sydney’s King River Capital and San Francisco’s BITKRAFT Ventures, the Series B financing brings Immutable’s total funding to $105 million.
Immutable X’s utility token is the IMX token, which powers the platform’s protocol. It’s an ERC-20 cryptocurrency that allows for the creation of NFTs using Immutable X’s layer 2 scaling solution on Ethereum.
Users can participate in future decision-making and governance protocols on Immutable X by using the IMX token. Users may also put their tokens to use as collateral for staking, which may generate significant profits.
Since the value of IMX tokens may increase, users are incentivized to purchase them if they want to use the platform.
The core feature of Immutable X is that it can bring previously uneconomical activities within reach of decentralized applications, such as high volume and high bandwidth dApps and media.
Immutable X is also a scalable solution. It can handle 9,000 deals per second while costing nothing to run and keeping user privacy as a core principle.
The Immutable X ecosystem has the potential to be the largest marketplace in the world for NFTs. The value of these DApps, along with that of IMX’s user base, is projected to grow as adoption increases.
Immutable X Marketplace
Immutable X already offers a range of tools that allow users to create, retain and trade NFTs. The Immutable X market comprises several tools and systems that utilize Ethereum’s technology. These include exchanges, marketplaces for trading NFTs, and decentralized applications (dApps) built on top of the platform.
The market is where people can trade a wide range of valuable items produced with Immutable X’s technology tools. These include NFTs, assets, and other digital assets.
The market offers a highly secure decentralized platform that provides users a smooth trading and ownership experience for their NFTs and ensures transactions are frictionless.
There isn’t much to trade, but the promise is there, and my read is that the platform itself is ready to handle high-volume projects.
For me, the current projects on the marketplace are underwhelming. But that’s an issue with community adoption, not with the technology behind the NFTs. With growing interest, I can easily see blue-chip properties embracing the tech.
There is already an ample supply of NFTs waiting to enter the market, and if Immutable can capture that surge as the platform of choice, their growth is guaranteed.
Developers can incorporate their solutions without blockchain expertise by utilizing Permissionless API Integration through Immutable. It’s a simple process that allows developers to build dApps on top of the platform, and because the team adopted Web3 standards, it’s an approachable platform for developers.
The protocol is highly scalable, thanks to off-chain transactions. The main chain remains tangle-free as users transact on their networks, which are decentralized and permissionless by design.
Using the widely accepted API approach, Immutable provides a better UI and process experience for developers and marketplace architects by allowing for a shared language and structure.
Users can access the platform simply by signing in with their Ethereum wallets. A mobile app is also available for Android and iOS devices.
Immutable X’s architecture doesn’t require up-front capital investments or high operating costs. The model benefits individual users who want to access the decentralized economy without carrying significant transaction fees.
The Layer to Watch
Immutable is making waves. TikTok has announced a move into NFTs; their NFTs will be made available on Ethereum and powered by Immutable X, which uses StarkWare’s innovative technology to create the first carbon-neutral Layer 2 scaling solution for Ethereum.
Immutable performs security and validation on behalf of the Layer 1 network by absorbing the Layer 1 security and validatory protocols, protecting user information and funds in private keys, and verifying transactions simply.
Its potential for increased profitability and liquidity could make IMX tokens extremely valuable as adoption grows and existing dApps begin producing more assets as well as user-generated content.
The first actual Layer 2 scaling solution for NFTs on Ethereum is here.