Nfts are great, but gas fees sure ain’t, but what if there was a layer 2 protocol that could solve that problem, one built specifically for nfts well, there is, and it’s called immutable x in this video, I’m going to give you everything you need to know about This nft infrastructure play tech, team, tokonomas competition, the whole caboodle trust me. You don’t want to miss this before we enter the realm of immutable x. There are a few things that need to be said. I am not your financial advisor and anything you see or hear in this video is purely intended for your entertainment and is strictly for illustrative and demonstrational purposes, only capitol splendido. Now, if this is the first time we meet, my name is guy and crypto is what i preach.
The coin bureau is your main go-to hub for the highest quality crypto content on the scene, coins, news, tokens reviews and pretty much anything else that my imagination can stretch to. If you enjoy this type of content and love. Seeing this charming chap on your screen, then subscribe to the channel and ping that notification bell. If you please, we all know that time is of the essence, which is why i’ve broken up the video timeline into different chapters. Just so, you can skip ahead to your favorite part and to the stuff that matters of course, watching until the very end is what i recommend.
Okay, I’ve said: what needs to be said? Are you set to explore immutable x? So what is immutable x? Well, it’s the first zk rollout based layer, 2 scaling solution for non-fungible tokens on Ethereum. Essentially, it’s a solution to the high gas fees and scalability issues that we’re experiencing on the Ethereum network.
When minting and trading nfts. As you no doubt know, this scalability issue is primarily because Ethereum’s current underlying proof-of-work architecture can only process up to 10 to 15 transactions per second and thus cannot withstand the amount of trading demand that this year-long nft frenzy has ignited and due to the incessant congestion. Inconsistency and network latency trading on the Ethereum blockchain has simply become unfeasible. Eth 2.0 really cannot arrive soon enough more about that.
In the description. This is where immutable x comes in. Immutable x is the fruit of a partnership between two well-established players in the blockchain and gaming development spheres, immutable and starkware, founded back in 2018 and previously known as fuel games. Immutable is a sydney-based blockchain gaming and digital asset technology company, spearheaded by brothers, james and robbie ferguson. The gaming and nft focused immutable raised 2.
million dollars in a seed round of july 2018, led principally by nirvana capital and continue capital with participation from coinbase ventures. Subsequently, in september 2019, immutable raised an additional 15 million dollars in a series, a funding round led by heavyweight vcs such as galaxy digital. This was in order to grow its in-game nft ecosystem and develop its flagship game gods. Unchained, then, in september of this year, immutable raised a whopping 60 million dollars in a series b round, spearheaded by gaming and esports vc bitcraft, with participation from other heavyweight entities such as alameda research, airtree ventures and vaynerfund, to name just a few okay. So that’s the first component of the immutablex equation.
Next, we have starkware starkware industries is an israeli-based startup that provides scalable blockchain technology for apps and dapps startware was founded in 2018 by eli ben sasson, uri kolodny and michael ryabsev. In may of 2018. The company raised six million dollars in a seed round led by pantera capital, metastable and polychain capital. It also had participation from notable individuals in the blockchain space such as vitalik buterin, yep, the v-dog himself and arthur brightman from tezos. Then later that year it raised an additional 30 million dollars in a series, a round led by paradigm sequoia capital and coinbase ventures.
In march of 2021, the company raised another 75 million dollars in a series b, funding round led by paradigm, and only last month, starkware raised another 50 million dollars in a series c funding round, led by sequoia, giving the israeli company a valuation of two billion dollars. Apart from immutable x, starkware’s scaling solutions are currently being implemented in a variety of blockchain products, including the dydx and diversified dexes, as well as the nft fantasy football card game sauro. Now the aim of this immutable and starkware partnership was to create a next generation platform that could battle the incessantly high gas fees on the ever-congested ethereum network and thus x appears to be the ultimate technical culmination of starkwear scaling, knowledge and immutables gaming and nft aspirations. However, you might be wondering why these two big players chose ethereum for the development of immutable x. In the first place i mean, couldn’t immutable x simply have gone with polygons hermes, zk roll-up architecture or even solana’s incredibly efficient throughput functionality for the development of its nft ecosystem.
Well, there is a very good reason for that, as previously mentioned trading, erc 721 nfts or any erc20 token, for that matter on, the ethereum network is quite frankly, a nightmare. At the moment, the ethereum network at present processes approximately 150 000 nft transactions per day. Taking up almost 30 percent of network usage, having said that, the market for non-fungible tokens is growing at such a rapid pace in terms of both cultural and economic awareness, that the need for a sustainable scaling solution for ethereum is becoming ever more dire. According to the immutable x white paper, nft trading volume has grown from 13.7 million dollars in the first half of 2020 to approximately 2.
billion dollars in the first half of 2021, and the most staggering thing about this is that we’re currently only scratching the surface when It comes to the utility depth and potential of nft technology in business d5, fine art and much much more already we’re seeing mainstream artists launch nft projects. Major brands such as adidas enter the space with the board 8 yacht club, for instance, nike with a metaverse sneaker studio, and existing d5 protocols such as uni swap use non-fungible tokens to bolster their financial applications. Now, despite the increasing amount of nft marketplaces and protocols on a multitude of different chains, the unrivaled pioneering force and the most liquid ecosystem in the sector is without a doubt, ethereum. However, that’s not to say that there aren’t nft marketplaces being built on other blockchains and platforms. I’Ve actually covered them before in a previous video of mine, which is linked to in the top right anyways, despite ethereum’s dominance in the market overall, and the clear demand for nfts ethereum inherently has some substantial hurdles to overcome in order to be the ultimate nft platform.
One that can scale to a global audience and withstand that level of transaction volume, and this is precisely where immutable x, with its high-tech, zk roll-up system comes in now when it comes to the fundamental implementation of immutable lexus technology, both immutable and starkware agree with vitalik Buterin’S argument that quote the ethereum ecosystem is likely to be all in on rollups as a scaling strategy for the near and mid-term future. In fact, immutablex believes that nft users and developers shouldn’t have to choose between either the security or the network effect of ethereum. So immutablex has implemented a new layer, 2 scaling solution that combines nft, specific exchange and proof logic with a sophisticated roll-up technology developed by starkware called starkx. Okay. Now, what i’m about to say might sound a bit complex but bear with me.
The core architecture of immutablex relies on what is called a zero knowledge, roll-up or zk roll-up scaling engine. So, let’s briefly discuss zk roll-ups first, shall we? This should give you guys a clearer picture of what’s going on here. In essence, zero knowledge roll-ups, together with optimistic rollups, are an integral component of layer 2 scalability. This is a collective term used for blockchain solutions designed to help scale an application by handling and processing transactions off of the layer, 1 ethereum mainnet in order to boost functionality and network efficiency.
Now, the way they work is as follows: zero knowledge, roll-ups, essentially bundle or roll up hundreds of transactions off-chain and generate a cryptographic proof of validity for those transactions known as a succinct, non-interactive argument of knowledge or snark, which is then posted on the layer. One blockchain as a proxy, in contrast to the optimistic roll-up systems being developed by optimism and arbitrary, for instance, which assume that all bundle transactions are valid and post them on layer 1 without performing any initial computation whatsoever. Zk roll up smart contracts verify that the transactions rolled up on layer 2 are inherently legitimate, which means that the system is always in a valid and arguably more secure state. Now, while i would say that zk roll ups proofs perhaps offer greater security than optimistic rollups, they are inherently less scalable, but that’s perhaps a topic for another video, perhaps one by yours truly anyway, still with me so far by the way, i’ll link to all these Resources in the description, if you want to come back to them later, moving on, though immutablex is able to reach unprecedented nft scalability on ethereum, primarily because it implements a proprietary, zk roll up technology called a stark proof or succinct, transparent argument of knowledge, as opposed to The more commonly used snarks, if you love acronyms, you’ve, come to the right place. Eh now, starks much like snarks can prove something is true without actually having to reveal what it is proving making the block validation process, far more streamlined and enabling greater scalability gains.
For example, starks would allow me to verify vitalik’s banking information using a zero knowledge proof instead of him revealing the confidential information. To me now, an interesting comparison to be made here is between polygons hermes, snark zk roll up system and immutable x’s stark proof. Immutable x leverages stark proofs as opposed to snarks, because the latter require a trusted and often more centralized setup to produce modular and pre-generated keys to validate proofs. These are also at times prone to security and implementation issues, stark proofs instead completely remove that pre-existing setup. Now, of course, this is not to say that i’m not a polygon fan, because i most certainly am, as most of you will know already, and i even hold matic as part of my personal portfolio.
Moreover, polygon’s existing hermes snark proof can already deliver massive scalability solutions which, according to its developers, can scale ethereum up by a factor of 133 process over 2 000 layer 2 transactions in a single batch and deliver over 90 reductions in token transfer costs, starkware’s proprietary, zk Roll up technology, on the other hand, can deliver scalability gains of up to 9000 transactions per second by implementing its stark system. This meets and greatly exceeds the scaling requirements for mainstream nft projects, reduces the carbon footprint of the slow and clunky nft minting on layer, 1 and ultimately, optimizes user experience on ethereum for nft and in-game asset trading, i’ll leave resources for starkware’s, innovative zk, roll-up tech in The description down below okay now i know that was a lot to take in. But my main point here is that there is a lot of high-tech infrastructure behind immutable x, which gives it some key usability advantages when it comes to this usability developers. Looking to mint nfts on its platform can do so directly on layer 2, while also maintaining the security of layer 1 ethereum. This makes the whole process cost effective and incredibly swift.
Now it is important to note, though, that users looking to trade nfts on immutable x will require a specialized key pair called a stark key pair, but don’t fret this is really easy to acquire. And here’s how immutable x has developed a trustless intermediate layer called link to act as the medium between any ethereum wallet and the immutablex protocol users will thus need to sign a security message before executing any nft trade on immutablex. This will then be used as the seed for the generation of the user’s own stark key pair, which in turn will be used to sign all on-chain transactions. Another key note is that immutablex provides users with a shared global order book to enhance protocol liquidity, which means that orders created on one integrated marketplace can be filled on another which fosters a more effective liquidity bootstrapping process and allows for greater price discovery for that marketplace’s Own nft assets. In essence, this allows nft marketplaces built on immutablex to gain access to sustained amounts of underlying liquidity, which naturally facilitates the process of buying and selling assets and increases the tradability of the nfts.
Furthermore, unlike most blockchain protocols, immutablex currently supports all ethereum desktop wallets without forcing users to switch networks or limiting them to the application of one single wallet allowing for the creation of a thriving third party, nft marketplace ecosystem, which leads me on to my next point. The immutable x marketplace, apart from offering software development kits and apis for businesses and developers to integrate its nft infrastructure immutablex, has developed its own in-house nft marketplace. This marketplace can be accessed through the official website portal, where users can browse through its vast list of collections and one-of-one nfts analyze. Each collection’s rarity features and view their current floor prices. Here, users can buy, sell and hold nfts without custodial risk.
In fact, all that’s required to do so is an ethereum desktop wallet, some eth, usdc or native imx tokens, and that’s pretty much it. Naturally, it’s important to note that immutablex takes a protocol fee for its integration, but it does allow users to set their own custom royalty fees, and these customization features are a major plus, especially as it pertains to user onboarding and future ecosystem development and adoption immutable x Takes a two percent fee on all primary sales which, when compared to some of the fees on other existing nft markets in the space, is pretty reasonable. In my opinion, in fact, this isn’t too far off from open seas. Fee structure, which is set at 2
5 percent on all primary sales and allows creators to set a royalty of up to 10 on all nft transfers. I’Ll leave a link to my openc video in the description.
If you’d like to learn more now when it comes to marketplace development, immutablex’s in-house nft marketplace has seen some exponential growth in terms of collections and assets listed over the course of the last few months, with more and more nfts being added on a regular basis. The earliest collections to appear on the marketplace were immutable’s own gods, unchained and guild of guardians, in-game nfts and the rather colourful moody, crows collection check out those beaks. These were soon followed by the 80s inspired and muscular astro bros and mutablex’s own crypto, punk and board 8 yacht club inspired collections. Take the degenerate ape academy on salon art, for instance. Now perhaps one of the most eye-catching collections listed on the marketplace is the tick-tock top moments collection, as its name suggests, this is tick tock’s.
First, ever nft collection led and designed by some of its community defining creators and i’m fully expecting other social media behemoths to enter the space soon. Oh wait. Instagram has only just announced that it intends to explore and potentially enter the nft ecosystem to reward its creator. Community, this should come as no surprise after the recent major rebranding of instagram’s parent company facebook to meta platforms in late october. Now, the nft ecosystem that instagram may end up embracing still remains a mystery.
However, it could very well be immutable x, primarily because of its scaling functionalities, carbon neutrality and institutional financial backing. I do find this particularly intriguing, especially because having the two biggest social media powerhouses officially venture into the nft space and launch their own collections. Once again, just makes me even more confident with regards to the growing influence that nfts are poised to have on our daily lives. Another noteworthy partnership is the one between immutablex and the digital collectibles marketplace fever. The partnership comes as a result of a comey’s aspiration to deliver more scalable nfts to its audience, and on december, the 16th vevay announced the re-minting of over three million collectibles through immutable x.
In addition to this, back in march of this year, openc announced that it would integrate immutable x in its nft marketplace and, while the details for this are yet to be fully finalized, i simply cannot wait to see the largest marketplace operate in a completely gas-free manner. Now, i’d like to raise another interesting and perhaps more speculative point here, and that is the potential integration of immutable x with coinbase’s own highly anticipated nft marketplace now. My reasoning behind this stems from the fact that coinbase ventures invested heavily in immutablex, and this inevitably leads me to the assumption that coinbase may want to incorporate and leverage immutablex’s scalability features for the expansion of its very own nft ecosystem. I mean it seems logical, and it really would make sense, so do keep an eye on that and now this brings me on to the next most important component of the immutablex ecosystem, and that is of course the imx token imx is an erc20 utility token, primarily Built for the purposes of rewarding pro network activities on immutable x, which include liquidity, provision trading and building applications, immutablex’s native token, imx has three main utilities, as it’s used for fees staking and decentralized governance. Now, 20 of immutable’s protocol fees must be paid in imx, which can be either paid directly in imx tokens or, alternatively, immutable will automatically swap the purchase asset like eth, for instance, for imx on the open market.
This essentially means that users aren’t technically required to hold imx tokens in order to trade on the immutablex nft marketplace as it pertains to staking all imx tokens derived from the 20 protocol fee are sent to a staking rewards pool which distributes tokens proportionally between all network Users who are actively staking their imx tokens on immutable x and finally, the imx token acts as an entry ticket to the ecosystem’s decentralized governance. Voting structure, which may include voting on proposals such as token reserve allocations, developer grants and changes in token supply. Imx has a total supply of 2 billion tokens with the tokens being created, issued and distributed by digital world nfts, a partner of immutablex now, based on the information available on both coin market cap and coin gecko imx has a current circulating supply of 188 million tokens And these are provisionally allocated to these areas here, judging by the current token unlock frequency of 28 days and the expected four year long token, distribution paired with the project’s long-term development aspirations. I do expect imx to perform strongly in the near future and in the mid-term which leads me on to price. Imx is up over 25 x since it launched in early november after it peaked at almost 60 x.
From its ico, price imx held its initial exchange, offering on coin list on september, the 8th at a price of 15 cents per token, and given that imx is currently trading over four dollars, that ico certainly paid early investors handsomely. The token is currently listed on some of the most liquidity-rich and well-established exchanges such as coinbase, kucoin and ftx, among others, and it enjoys a healthy and substantial amount of trading volume. The announcement of imx’s listing on both coinbase and ftx sent the token into price discovery. Pretty quickly, but since then, it has experienced a few major pullbacks from its all-time high. This was, of course, to be expected, as it gradually started, coming off its initial hype cycle, given its tokenomics imx, currently sits at a fully diluted market cap of over nine billion dollars, which is pretty high, especially for a project this young, and that’s just one of My concerns, which brings me on to some of the challenges it could face while immutable x, does have first mover advantage in the development of the first scalable layer 2 solution for ethereum nfts.
It is bound to inevitably face some fierce competition from other protocols looking to deliver similar infrastructures and while immutablex’s proprietary architecture is at the cutting edge when it comes to nfts other existing scaling solutions such as those optimistic roll-ups developed by the likes of arbitrarium and optimism, Or even polygons hermes, zk roll-ups could very well come to challenge immutablex’s future adoption in the space. You also have to consider the fact that the ethereum network itself is going through a bunch of changes. Next year, changes like a transition to proof of stake and eventually sharding. If these changes lead to the improved scalability, many are hoping for it could slightly negate the dire need for layer 2 scaling solutions. This is a challenge all layer 2s face and not just those built for nfts.
Another key point to note here is immutable, x’s extremely ambitious roadmap. Now the team believes that it will be able to successfully bring nfts to mainstream adoption, to create a seamless bridge for traditional businesses and online economies to integrate nft technology within their ecosystems. However, this inherently means that its long-term success will be almost entirely contingent on other high-tier companies adopting and integrating it within their respective business models. While there appears to be a lot of hype around it right now, there are many who think we could be in a bit of a bubble. I personally think that we are due an nft correction at some point.
All markets go through these and it’s healthy to flush out the low quality pardon my french site. If we do go through such a period, demand for minting and trading nfts is likely to wane, which could impact on adoption of layer, twos and nft technology. More generally. So be aware that the success of immutable x is inextricably tied to the nft space, and that’s all i have for the video on immutable x today, guys, while this nft frenzy cannot possibly last forever. All i will say is that over the last couple of months, or so, i’ve been diving deep down, that non-fungible rabbit hole and i’m growing ever more intrigued by how fast-paced the nft space actually is.
I wasn’t expecting a layer, 2 solution designed specifically for nfts to come out so quickly, but with blockchain and especially nfts, perhaps expecting the unexpected is the best strategy to adopt all in all. What immutable x is building makes perfect sense to me, because, if nfts are going to be around in the long run, they are going to require a solid scalable and efficient infrastructure for them to continue thriving. But while immutablex is currently at the helm of the layer, 2 nft space, i do also foresee a variety of other new up-and-coming protocols looking to deliver similar tech and scaling solutions. But all things considered, that’s all right, the more the merrier right, ultimately, the future of blockchain and of nfts in my opinion, should rely on interoperability, scalability and security. You can call this guy’s blockchain trilemma.
If you want chain maximalism and balkanization is simply a dead end. In my eyes, and i’m really curious to see how this space will develop in 2022 and beyond, and despite it being really early days for immutable x, its future trajectory looks very promising indeed, and who knows yours truly might decide to have his own nft marketplace, powered By mutablex one day, wow, that really was a long one, but get me started on stuff like this and i really can go on and on. But for the sake of you and for the sake of my voice, perhaps it’s best that i don’t, but i want to hear from you folks now are you fans of immutable x? Do you hold any imx? Have you ever traded any nfts on the immutablex marketplace?
I’M really curious to know, so. Please drop all of your answers in the comments section down below until the next video rolls out. Here’S where you can find me twitter, instagram, tiktok and telegram. You should also subscribe to my newsletter. It’S packed with all the tools, tips and tricks that will make your life better.
If you’re keen to have a look at what goes on behind the scenes, then feel free to check out coin bureau clips. If you happen to have some extra cash for a coin bureau, hoodie or tea, then yippee you can access all these resources and more using the links down below i’ll, be back before you know it folks. Until then, this is guy signing off.