What is Immutable (IMX)?

Ethereum is widely recognized as a top blockchain platform that powers smart contracts, enabling developers to build and run a wide range of applications. But as powerful as Ethereum is, it faces a significant challenge: scalability.

So, what does that mean? When people use Ethereum, their transactions must be processed and added to the blockchain, which takes time. As more users join and interact with the network, it can get congested, leading to slower transactions and higher fees. This congestion is a major hurdle for projects relying on frequent, fast, and affordable transactions—especially NFTs and blockchain gaming.

That’s where Immutable X steps in. As a “Layer-2” solution on Ethereum, it takes on the heavy lifting, offering faster and cheaper transactions while maintaining the security of the Ethereum network.

Let's learn more about Immutable below!

Immutable is a platform designed to make blockchain more accessible, especially for NFTs (non-fungible tokens) and blockchain-based games. Founded with the goal of solving Ethereum’s high transaction fees and slow processing times, Immutable’s main product, Immutable X, is a “Layer-2” scaling solution. This means it operates on top of Ethereum, helping it process transactions more efficiently without the usual costs. With Immutable X, developers, artists, and gamers can create and trade NFTs without worrying about prohibitive fees or delays. By providing a faster, lower-cost environment, Immutable X opens doors for those who want to explore digital ownership, whether it’s owning items in games, collecting digital art, or trading virtual assets.

How Does It Work?

The core technology behind Immutable X is something called Zero-Knowledge Rollups, or ZK-rollups. In simple terms, ZK-rollups are a way to bundle multiple transactions together, processing them off-chain (outside the main Ethereum blockchain) and then posting them as a single transaction. This bundling significantly reduces the time and cost of transactions on Ethereum, making it ideal for applications like NFTs and blockchain gaming, where lots of transactions happen frequently.

Immutable X uses a specific type of ZK-rollup technology called ZK-STARKs (Zero-Knowledge Scalable Transparent Argument of Knowledge). ZK-STARKs improve both the privacy and security of transactions by verifying data without revealing sensitive information. This keeps user data secure while ensuring transactions are fast and affordable.

IMX The Token

The IMX token is an essential part of Immutable’s ecosystem with different use cases:

Transaction Fees: IMX is used across Immutable’s ecosystem to pay for transaction fees, helping maintain the platform’s operations.
Staking Rewards: Users who hold IMX can stake (or lock up) their tokens and earn rewards. This staking process encourages long-term involvement with Immutable and benefits users who actively participate.
Governance: IMX holders have voting rights in key decisions related to Immutable’s future. This gives the community a chance to shape the direction of the platform, making it more community-driven.

Buy & Sell Immutable (IMX) in a Tax-Advantaged Crypto IRA

For those interested in IMX, you can buy and sell it within a tax-advantaged Crypto IRA* at iTrustCapital. These accounts allow people to hold digital assets like IMX while potentially enjoying tax benefits, similar to traditional retirement accounts.

Click here to get started today!

*Some taxes may apply.

DISCLAIMER

This article is for information purposes only. It does not constitute investment advice in any way. It does not constitute an offer to sell or a solicitation of an offer to buy or sell any cryptocurrency or security or to participate in any investment strategy.

iTrustCapital is a digital asset IRA software platform. It is not an exchange, funding portal, custodian, trust company, licensed broker, dealer, broker-dealer, investment advisor, investment manager, or adviser in the United States or elsewhere. iTrustCapital is not associated with and has no direct relationship with IMX. iTrustCapital is not affiliated with and does not endorse any particular digital asset, precious metal or investment strategy.

Cryptocurrencies are a speculative investment with risk of loss. Precious metals are a speculative investment with risk of loss. Cryptocurrency is not legal tender backed by the United States government, nor is it subject to Federal Deposit Insurance Corporation (“FDIC”) insurance or protections. Clients do not receive a choice of custody partner. The self-directed purchase and sale of cryptocurrency through a cryptocurrency IRA have not been endorsed by the IRS or any regulatory agency. Historical performance is no guarantee of future results.

Some taxes and conditions may apply depending on the type of IRA account. Investors assume the risk of all purchase and sale decisions. iTrustCapital makes no guarantee or representation regarding investors’ ability to profit from any transaction or the tax implications of any transaction. iTrustCapital does not provide legal, investment or tax advice. Consult a qualified legal, investment, or tax professional.

iTrustCapital makes no representation or warranty as to the accuracy or completeness of this information and shall not have any liability for any representations (expressed or implied) or omissions from the information contained herein. iTrustCapital disclaims any and all liability to any party for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this information, which is provided as is, without warranties.