What is Immutable X (IMX)?


Introduction Immutable X (IMX)

In July 2015, Ethereum was introduced as an open-source smart contract platform offering a structure for users to interact with the network and build solutions on top of it. This has led to the development of a wide range of solutions such as Decentralized Applications (Dapps), Decentralized Finance (DeFi), and Non-Fungible Tokens (NFTs), with the latter gaining rapid popularity. NFTs on Ethereum are created to verify and transfer ownership of unique digital assets.

Being one of the most used blockchains, Ethereum experiences the benefits and drawbacks of its wide adoption. One of the biggest drawbacks is its current structure. The network is limited to a maximum of 15 to 20 transactions per second, causing the network to get congested at times of high transaction throughput.

When Ethereum experiences congestion, a chain reaction occurs where users start increasing their gas fees (transaction costs) to prioritize their transactions. This, in turn, escalates the gas prices across the network, as more users continue to raise their fees to get prioritized. At times, gas prices have even exceeded the value of the digital assets being transacted.

Solution provided by Immutable X

Immutable X solves this problem by offering a Layer 2 scaling solution that solely focuses on the NFT market, leveraging zero-knowledge proofs created by Starkware, better known as ZK-STARKs. In ZK-Rollups, numerous transactions are executed in a batch on the Layer 2. Following this, a summarized version of these transactions, along with a cryptographic proof confirming their validity, is sent to Ethereum. This process significantly increases throughput on Layer 2, as only the compact summary and proof need to be recorded on Ethereum.

Gas on Ethereum vs Immutable X

By adopting this method, Immutable X allows users to interact with the NFT ecosystem more efficiently and cost-effectively while maintaining the high level of security inherent to Ethereum. Furthermore, the development of the ZK-EVM special for blockchain-based games by Immutable X marks an important advancement in further enhancing these capabilities, offering even greater scalability while retaining Ethereum's trusted security framework.

Immutable X Technology

Immutable X leverages various technologies but we would like to highlight its implemented ZK-STARK technology. ZK-STARKs in Immutable X ensure strong privacy and security by confirming transactions without disclosing particular data. This enhances both privacy and scalability in blockchain applications. Compared to other Zero-Knowledge Proofs like ZK-SNARKs, ZK-STARKs are notable for their scalability and lack of a trusted setup need, which enhances transparency and security. ZK-STARKs bundle many transactions in Immutable X, which is driven by StarkWare's StarkEx engine, and generate a validity proof for each batch while preserving secrecy.

This important procedure lowers costs and increases transaction throughput by drastically reducing the amount of data processed and stored on the Ethereum blockchain. ZK-STARKs are especially useful for NFT-related operations on Immutable X, such as minting and trading, since they allow for quicker, more affordable operations while maintaining strong security and privacy requirements.

The Immutable X Ecosystem

Immutable X has been taking significant steps across various sectors including Collectibles, Gaming, Marketplaces, and DeFi, establishing partnerships with some of the biggest names in the NFT and blockchain space.

One of these famous partnerships was with Disney in 2021, in collaboration with VeVe Disney launched an NFT featuring iconic franchises such as Disney, Marvel, Star Wars, and Pixar. This set was launched on Immutable X’s network, offering a new dimension of collectibles for its fans.

Immutable X's partnership with StarkWare remains a cornerstone of its technical strategy. This ongoing collaboration, crucial since StarkWare's inception in 2017, focuses on developing and implementing scaling solutions. StarkEx, a key technology from StarkWare, is central to enhancing Immutable X's scalability, showcasing the enduring importance of this partnership in driving Immutable X's success.

Immutable X News

On November 9th, Immutable announced a collaboration with Ubisoft, a major video game designer and publisher known for games such as Assassin’s Creed and Avatar, to build a unique gaming experience that would expand the possibilities of web3. Immutable's mission to provide gamers with digital ownership is furthered by this relationship, while Ubisoft's Strategic Innovation Lab explores decentralization.

Immutable partners with Ubisoft

On December 14th, Immutable announced that Immutable Passport will be able to remove gas expenses for Immutable zkEVM, powered by Polygon. Without affecting the user experience, all games and markets on Immutable zkEVM will be permitted to cover the cost of gas for Immutable Passport holders.

Immutable X Price

Following a significant drop in the bear market, IMX's price bounced back impressively, showing a strong upward trend. It recovered from a low of approximately $0.37, highlighting the resilience and growth potential of IMX.

Technical Analysis

Currently, IMX is encountering a notable hurdle of around $2.60. This level is crucial because it coincides with the 0.618 Fibonacci retracement level. The combination of this resistance and the Fibonacci level suggests that the $2.60 mark is a key point to watch. As we anticipate ongoing growth in the coming year, the price of IMX might move sideways for a while before overcoming this resistance level.

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