Layer2 NFT Solution Provider ZKBox Released NFT Scaling Analysis

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Aug 24, 2021, 00:03 ET

SINGAPORE, Aug. 24, 2021 /PRNewswire/ -- Layer2 NFT solution ZKBox, has published a layer2 NFT scaling analysis report written by ZKBox's development team.

Among all Layer2 solutions, sidechains (Matic, Ronin, xDai), state channels (Efinity, Raiden), Optimistic Rollups (Optimism), ZK-Rollups uses "validity proofs" like SNARKs or STARKs and plenty of complex mathematics to prove the validity of the transactions in the rollup. Using validity proofs means that once a proof has been accepted on-chain, users have immediate confirmation that those transactions were valid.

Immutable X is the first L2 based NFT protocol that allows anyone to develop decentralized marketplaces, blockchain games, and other Dapps. As opposed to Layer1 NFT solutions, L2 NFT solution has faster transaction speed, lower gas cost. ZKBox is an L2-based NFT protocol to be launched by L2 Labs. The team aim to build a Layer2 based decentralized NFT mining, trading platform with less transaction time and gas costs. Although both protocols are L2 based - ZK-Rollups NFT solutions for network connections between Ethereum Layer1 and Layer2, there are some differences in the implementation process and the contrast of data disclosed by the project.

Comparison and Contrast

	Immutable X	ZKBox	Note
Zero-Knowledge-Proof Solution	Based on ZK-STARKs, in partnership with StarkWare	Based on ZK-SNARKs	ZK-SNARKs requires a trusted party, while ZK-STARKs doesn't.
Zero-Knowledge-Proof System	Validium	ZK-Rollups	Validium sacrificed data usability to improve system operational efficiency, but this also reduced security of Zero-Knowledge-Proof system.
L2 Transaction Speed	9000 TPS (team claims)	Unknown	Though Immutable X claims it can reach 9,000 TPS in speed, the actual effect does not reach.
Support NFT Standard	ERC721	ERC721	Immutable X claims to support ERC1155 at a later stage
Innate NFT Marketplace	Yes	Yes	Immutable X is now offering MaretPlace. But compared to trading platforms such as openSea, the functionality is rather rudimentary.
Token Offering	IMX Token	Unknown	IMX Token can be applied for Immutable X proposal, transaction fee and staking rewards.
Transaction Model	Book Building	Book Building	Immutable X roadmap says that it will support AMM model at a later stage.
Token Economy	20% transaction fees paid in IMX Token	Support payment in multiple tokens	Frequent NFT trading at L2 can increase IMX Token circulation and liquidity.
Interactive Mode	API	Website, App and API	According to Immutable X, they focus on API protocol building and do not over develop on website pages.
Method of NFT Creation	Email team to create and mint	Users initiate NFTs creation; later to be approved by dev team	Both support for individual and batch releases.
Support Third Party L1 NFT	No	Yes	ZKBox supports the existing L1 NFTs deposit to L2, enabling the original NFTs of L1 to trade on L2. This will help players save gas cost and increase transaction speed.
NFT Withdrawal to L1	Creator has to prepare L1 mintable NFT smart contract for withdrawal to L1	Yes, users don't have to prepare smart contract for withdrawal to L1	ZKBox eliminates the need for NFT creators to deploy smart contracts in L1 by saving all NFTs in the same L1 smart contract.

Users Engagements

The above table in the report contrasts that both Immutable X and ZKBox are L2-based NFT protocols. Immutable X is mainly focused on the design of the protocol API. Only the dev team can issue NFTs for market trading, and players or studios need to contact team Immutable X for NFTs creations. ZKBox on the other hand, focuses on the building of its own protocols and applications through websites, App and API. These are user-friendly and convenient interactive modules that can attract a bigger user base.

In terms of being inclusive, Immutable X aims to support both ERC721 and ERC1155 token standards, the latter will be supported at a later stage according to Immutable released whitepaper. The team has designed to charge 20% of each transaction in IMX Token. Thus the more frequent the NFT trading is, the better IMX Token circulation and liquidity the platform can achieve.

To bring a larger player base into the ecosystem, ZKBox supports the existing L1 NFTs deposit to L2, enabling the original NFTs of L1 to trade on L2. This will help players save gas costs and increase transaction speed. ZKBox eliminates the need for NFT creators to deploy smart contracts in L1 by saving all NFTs in the same L1 smart contract.

It is worth mentioning that Immutable X uses StarkWare backed Validium zero-knowledge-proof technology to improve transaction speed. However, to improve the speed of transactions, the solution sacrifices data availability and reduces the security of the zero-knowledge-proof system and the transactions between Layer1 and Layer2.

SOURCE ZKBox