Immutable X, An Ethereum Scaling Solution, Will Enable Ether-to-Dollar Withdrawals
- The program is one of the first layer 2 services that enable customers to withdraw cash from their accounts.
- Only the UK, a few U.S. states, and the European Union presently provide the withdrawal service.
- The service, according to Immutable CEO Robbie Ferguson, comes at a time when the cryptocurrency community is having issues with centralized crypto lenders.
The ability to receive U.S. dollars in bank accounts on Ether withdrawals is a major advantage of Immutable X compared to other Ethereum scaling solutions.
With this feature, developers can enable their users to sell the layer 2-based Ether and have the proceeds deposited directly to their bank accounts. This will make it much easier for users to use ETH for everyday purchases without having to worry about converting it into fiat currency first.
Currently, Ethereum’s DeFi ecosystem is limited by the slow speed of transactions on the mainnet. This leads to high fees and long wait times for users looking to trade or interact with decentralized applications (DApps).
While the current state of affairs is far from ideal, it doesn’t seem likely that Ethereum will be able to scale sufficiently to meet rising demand in the near future. This is where Layer 2 solutions come in. By offloading some of the work onto a separate network, they can provide a much-needed boost to scalability.
Immutable X is one such solution that has been gaining a lot of attention lately. Immutable X is a decentralized layer 2 solution that uses plasma technology to enable fast, cheap, and energy-efficient transactions. According to developer documentation, Immutable can process over 9,000 transactions per second (tps), while the Ethereum network averages 10.54 tps as of Thursday morning.
This significant increase in transaction speed could go a long way towards making DeFi more user-friendly and accessible to a wider audience. In addition to being faster and cheaper than the mainnet, Immutable X is also more energy-efficient.
This is because Plasma chains only require consensus on their very latest blocks, rather than all blocks like traditional blockchain networks. As a result, they use far less electricity than proof-of-work (PoW) systems like Ethereum.
So far, Immutable X seems to be living up to its promise as a scalable solution for Ethereum’s DeFi ecosystem. If it continues to perform well, it could play a key role in taking DeFi mainstream in the years ahead.