Ethereum startup Immutable aims to cut NFT costs with new Layer 2 scaling protocol

Apr 8, 2021 | The Block News | 0 comments

ethereum-startup-immutable-aims-to-cut-nft-costs-with-new-layer-2-scaling-protocol

Immutable, the startup behind the Ethereum-based trading card game Gods Unchained, has launched the first phase of its Layer 2 scaling protocol, dubbed Immutable X.

Immutable X aims to solve one of the primary economic issues facing non-fungible tokens (NFTs): the high cost of minting and transacting on the Ethereum network. NFTs are, put simply, blockchain-based digital certificates tied to artworks, gaming items and other unique types of digital assets, and their growth in popularity has shined a light on the spending required to actually make use of them. 

To be sure, the high cost of transacting on Ethereum isn’t limited to NFTs. As of April 7, the average transaction fee is $20.19, according to data collected by The Block, with more complicated transactions requiring even more gas to compute. What’s more, other startups in the Ethereum ecosystem are also working on Layer 2 scaling solutions

Immutable is betting that its technology approach — giving users two distinct scaling options under the Immutable X framework — will drastically cut the costs associated with minting and using NFTs. Thursday’s rollout involves the launch of a marketplace on mainnet that’s exclusively available to Gods Unchained users, who can now trade and purchase cards with the aid of the protocol. 

Immutable has drawn backing from investors like Naspers Ventures, Galaxy Digital and Apex Capital Partners. The launch comes a week after NFT marketplace OpenSea announced support for the scaling solution. 

As noted by the development team, Immutable X will be expanded on in stages. In the second phase, Immutable X will be made available to other exchanges and decentralized applications. During phases 3 and 4, the protocol will be enhanced with new optimizations and scalability features, including liquidity incentives like drops and fiat support. For the final phase, Immutable plans to share its vision for physical assets like real estate, looking beyond digital ownership via NFTs. 

At launch, the Immutable team also highlighted a commitment to carbon neutrality, and as such the startup will purchase carbon credits to offset the consumption of gas — required for transaction on Ethereum — for corresponding NFT activity carried out via the protocol. 

“With today’s Immutable X Alpha release, we’ve made this vision reality. Any NFT can now be traded, earned, shared, gamed and collected completely gas-free on Ethereum,” Robbie Ferguson, Immutable C-Founder, said in a statement.

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

News Source from TheBlockCrypto.com

Related Articles

South African Crypto Platform Revix Raises $4.1 Million

South African Crypto Platform Revix Raises $4.1 Million

The South African cryptocurrency investment platform, Revix, has reportedly raised about $4.1 million from its latest capital raise round. According to the firm, part of the raised capital will be used “to launch Revix’s mobile application, a variety of Fourth...

PayPal’s Venmo now allows users to buy and sell crypto

PayPal’s Venmo now allows users to buy and sell crypto

PayPal's social payment arm Venmo has officially launched the service to let its users buy, hold and sell crypto assets within its mobile app. The company said in an announcement that the service, called "Crypto on Venmo," starts to roll out on Tuesday and will be...

Former currency comptroller to become CEO of Binance US crypto exchange

Former currency comptroller to become CEO of Binance US crypto exchange

Former top U.S. banking regulator Brian Brooks is joining the U.S. affiliate of the world’s largest cryptocurrency exchange as its new CEO. Brian Brooks, the former acting comptroller of the currency of the United States Office of the Comptroller of the Currency, is...

Pin It on Pinterest

Share This