What is Immutable X NFTs? Ethereum NFTs without gas fees! =

Not a day goes by without us talking about NFTs. Some think it’s a bubble, others people invest exorbitant sums in digital art. Jimmy Fallon of The Tonight Show said in January 2022 that he had a Bored Ape Yacht Club NFT, just like Paris Hilton and now Justin Bieber. The future of this digital art as NFTs is debatable, but what is certain is that buying NFTs in the network is accompanied by sky-high transaction costs.

Paying a few hundred dollars to buy an NFT, regardless of the actual purchase price, is unfortunately no exception. That is why there are more and more protocols that want to offer solutions for this. Immutable X is a layer 2 blockchain protocol that enables the trading of NFTs on the Ethereum network without gas fees. Discover everything about Immutable NFTs in this blog!

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  • View quickly
  • Restrictions NFTs Ethereum
    • Scalability
    • User experience
  • What is Immutable X?
    • Blockchain layers
    • IMX chain
  • How does Immutable X work?
    • ZK Rollup
  • Ethereum Wallets
  • Benefits Immutable X
  • IMX token
    • Transaction Fees
    • Rewards
  • Immutable X NFT marketplace
    • User experience
  • Partners
  • Conclusion
  • Make money with NFTs?
    • Start immediately with our NFT Blueprint!

Watch an introduction in the video below and discover how you can trade NFTs in the Ethereum network without paying gas fees:

 

Restrictions NFTs Ethereum

Ethereum is the largest network on which NFTs run and is also the most commonly used for trading it. There are now several NFT marketplaces in other networks, such as NFTb on the Binance Smart Chain, but Ethereum nevertheless remains invincible. Still, Ethereum also has a series of limitations . More and more protocols are emerging that aim to improve this problem in order to maintain the trade in NFTs. Let’s first look at the two main limitations:

  • Scalability
  • User experience

Scalability

Due to the nature of Ethereum’s blockchain and network, scalability is the biggest issue facing Ethereum. Especially with the development of DeFi and the emergence of NFTs, the network is increasingly overloaded and trading here is accompanied by low transaction speeds and high transaction costs, which we know as gas fees.

Traditional databases can complete between 5 and 15 transactions per second (TPS). This limitation has led to network congestion. Even when Ethereum 2.0 goes live, some say the network will still have scalability issues.

User experience

Despite January 2022 being another record trading volume on OpenSea’s NFT platform , there are still a few comments regarding the user experience. Transactions can be unnecessarily slow, which has an impact on both the user experience and price development. Traders want to be able to switch quickly and do not want to wait unnecessarily long.

Solutions exist, but they focus exclusively on improving this user experience. This is at the expense of the decentralized network and security , according to the Immutable X team . So this is a targeted solution to scale NFT trading in a secure environment.

immutable.com

What is Immutable X?

Immutable X is a layer 2 protocol built on Ethereum’s network for trading NFTs and was launched in April 2021. Because these unique tokens exist in Ethereum’s network, they are all EC721 tokens. This is the token standard for NFTs on Ethereum.

The platform was created by an Australian game developer Immutable in collaboration with StarkWare, a blockchain scaling startup. Together they want to solve the recurring problem of scalability in order to enable the trading of NFTs on a large scale.

Ethereum is the largest blockchain that uses smart contracts. This makes it the ideal platform for developers to build decentralized applications (dApps) and even other blockchains.

Building such an ecosystem from scratch is often time consuming and unnecessary. That is why it is better and above all more efficient to start from an existing protocol and to modify it according to your own wishes. Therefore, many tokens in the landscape are also ERC20 tokens, and many NFTs are tradable with Ethereum, such as on OpenSea or Rarible. Thanks to Immutable X you can develop projects in the Ethereum network, where you can focus on scalability and gas fees thanks to ZK Rollups, among other things.

Blockchain layers

Blockchain technology has several blockchain layers. The first layer is the network layer, such as Ethereum. This ensures communication between all individual participants of the network so that all transactions and information transfer run smoothly . Think of the communication between nodes in the network, but also to implement smart contracts and to make decentralized applications work.

It is therefore possible to build an extra layer, so you have a total of 4 blockchain layers. In this article we will only briefly discuss the second blockchain layer. This layer includes the consensus algorithm that is used to look at the scalability of the network. By building an extra layer on top of the foundation, they can solve this problem . This by removing the work from the blockchain by means of, for example, side chains in order to be able to scale.

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IMX chain

It is important to know that these NFTs are therefore on the IMX chain, which is built on top of Ethereum. So they are just ERC721 tokens in Ethereum’s network, but on a different layer on the mainnet. You can think of this as two separate highways where your car can drive on both lanes. On one track it runs electrically, on the other track it runs on petrol. So you can drive on both highways, but the highways are not connected.

So if you want to trade your NFT in the network of Ethereum itself, such as on OpenSea, you will have to transfer it to the correct network. From this moment on you do pay gas fees. Always check in advance whether the NFTs that can be offered on IMX can also be offered on OpenSea.

Do you want to know more about blockchain layers? Discover in this blog which layers exist and how they work. Do you want to know more about layer 2 scaling solutions? In the video below, made by AllesOverCrypto, we explain more about this type of scalability solution.

 

How does Immutable X work?

Immutable X is thus the first layer 2 for NFTs in the Ethereum network. By using ZK-Rollups, NFT trading on Immutable X happens without long transaction times, but also without gas fees. This alone is an entirely new development.

ZK Rollup

ZK-Rollup, Zero-Knowledge Rollups, are layer 1 smart contracts that make the Ethereum network scalable by processing transactions off-chain. Transaction data is processed in the main network.

Because this transaction data is located on the mainchain, these rollups are secured by layer 1. Specifically? The security of Ethereum is inherited for the transaction data, while its effective execution takes place outside of this blockchain. The question is often asked why side chains are not used. The problem with side chains is that they are not very decentralized. Many have only a few central nodes with their own consensus algorithm. It therefore allows sufficient information and transactions to pass through, but poses a threat to the decentralized character.

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Ethereum Wallets

Immutable X has an integrated wallet that you can connect to any Ethereum wallet. The advantage is that the protocol provides an intermediate layer. This way, Immutable X can also support external ecosystems, without security being a problem here. This forms on the layer 1.

Immutable X supports the following wallets:

  • MetaMask
  • Magic

After you have connected your wallet, you need to sign an additional smart contract to make this connection. Always pay close attention to what you are drawing. Read the message carefully and know what you are approving for. In a decentralized environment you are responsible at all times.

Benefits Immutable X

To view the possibilities of Immutable X, it is useful to look at all the benefits:

  • No gas costs
  • Determine trading fees yourself
  • Scalability up to 9 000 transactions per second
  • Secured by Ethereum

In fact, it takes over all the beneficial properties and improves the critical points. Security is always essential in a decentralized network. The fact that Immutable X is secured by Ethereum itself is a very big advantage. In addition, they can go from 30 transactions per second to as many as 9,000 transactions. This allows for unprecedented scalability in NFT trading. And to make it even better: say goodbye to gas fees.

Immutable.com

IMX token

$IMX is an ERC-20 utility token that rewards users of Immutable X. Do you trade NFTs on the platform, provide liquidity or build applications on Immutable X? Then you will receive IMX tokens for this. No team member receives IMX tokens themselves for their work, the token is exclusively for the community.

Transaction Fees

The token is used as a protocol fee. Immutable X takes a 2% fee on all primary sales. This is similar to OpenSea, which have the same structure but use 2.5% here. 20% of this fee is paid in the native token. This can either be done directly in IMX tokens, or the platform will automatically swap part of the purchase currency, Ethereum in this case, to IMX. This means that users do not need to own IMX tokens themselves in order to transact.

Immutable therefore gives you the freedom to determine your own trading fees , but 20% of this is paid in the native token. This does not change the zero gas fees.

Rewards

Users who own the IMX token and stake it in the protocol will be rewarded for this. This amount is proportional to your share in the total amount. But there’s more. Users can earn IMX rewards by starting to trade NFTs on the platform. For this they receive points that are distributed among the users for 24 hours.

Immutable X NFT marketplace

So Immutable X’s NFT marketplace aims to be the future of NFT trading with all the benefits, without users having to pay hundreds of dollars in gas fee here. In the dashboard you immediately get an overview of all collections. Fortunately, you can also search for specific keywords.

User experience

What is immediately noticeable is that there is no breakdown menu here like with Rarible or OpenSea. Immutable X currently focuses exclusively on digital art and not on other types of NFTs such as music or photography.

It is also useful to get an overview of an entire NFT collection. This way you know how many NFTs there are, which can also be decisive for your purchase. Besides popularity, scarcity is of course an interesting factor that can determine the price. With Immutable X you only see specifications about the current NFT, but there is no overview page of the entire NFT collection.

In the overview below you see the Nifty Nuggets collection where you can filter links by external characteristics. However, you will not get any specifications here about how many Nifty Nuggets exist or who the team behind it is.

market.x.immutable.com

Partners

None other than OpenSea announced in March 2021 that it would integrate Immutable X into its NTF marketplace. In addition, there is also speculation that Coinbase is looking to integrate Immutable X’s scalable NFTs with their own long-awaited NTF marketplace at launch.

Conclusion

Trading in NFTs exploded in 2021 and another record was set in January of 2022. In January 2021 alone, nearly $5 billion worth of NFTs were traded on OpenSea alone . In addition to these astronomical amounts, there are numerous trading platforms that are also developing and where more and more trade is taking place.

The interesting thing here is that we are just at the beginning of all NFT applications and the applications in the world of DeFi. We are already seeing several artists launch their own NFT collections, including Adidas and Dolce&Gabanna. But for now, many people are staying away from NFTs for one simple reason: gas fees. A large part is excluded because they simply do not want to take the risk, or are not financially strong to pay hundreds of dollars in gas fees.

Immutable X offers solutions to the problem here. But is this the holy grail? The success of an NFT marketplace depends on several factors. Popularity and the number of users are an important part here. Of course you want to trade on a platform that has many users, in order to trade your NFT with nice profits . User-friendliness is also important. We see that there is still a lot to be gained here at Immutable X. Despite the fact that the range is also less, you cannot filter as a user. OpenSea is and remains a pioneer as an NFT marketplace, despite the high gas fees.

Do you have any questions about Immutable X, blockchain layers or ZK rollups? Ask us in our AllesOverCrypto Facebook group where we now have more than 100,000 members! You can also easily find the answer to a question about crypto in our FAQs. Furthermore, you can also find a lot of information by googling your question + AllesOverCrypto.

 

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