I have been fascinated by crypto for a long time now, and I enjoy sharing what I have learned about it on ToughNickel.
What Is Enjin?
Enjin unites gaming with cryptocurrency's blockchain technology. It was founded in 2009 as a gaming community network, and it grew to 20 million users over a decade. In 2017, Enjin established itself as a leading blockchain ecosystem developer and developed various software products that enable users to easily create, manage, trade, and use blockchain assets within video games. The Enjin system is fuelled by a cryptocurrency called Enjin Coin, or ENJ, which is used to back the value of the tokens on the blockchain.
Enjin is now a blockchain gaming ecosystem on the Ethereum network that offers game developers all tools they need to build games with blockchain features like non-fungible tokens. This gives businesses of all sizes the ability to use digital assets as part of their acquisition, retention, engagement, and monetization strategies.
It is also a social network and marketplace for gamers to interact and trade in-game items, like weapons or armor and even player characters as tokens. Similar to how Bitcoin enables actual and direct ownership of digital money, Enjin enables actual and direct ownership of virtual items.
The marketplace, community network, and all of the other tools can be accessed with the Enjin Wallet, which is where users' in-game items and cryptocurrencies are stored. Enjin elements are very easy to use, which is essential for widespread adoption because most other cryptocurrency projects are only held back by being complicated to use. Enjin doesn't have this problem.
What Are Non-Fungible Tokens?
NFTs are assets that are traded on a blockchain like cryptocurrencies. However, they are not fungible, like currencies—they are unique. They serve as a certification of ownership and can be used to exchange digital goods such as art, music, or in-game items. Enjin focuses on in-game item NFTs.
One of Enjin's co-founders, Witek Radomski, wrote the code for one of the first-ever non-fungible-tokens and worked on ERC-1155 which is Ethereum’s NFT token standard.
Why Would In-Game items Be Sold as NFTs?
The market for in-game items is already well established; in 2020, a skin for a weapon in CS:GO was sold for more than $100k. Minting such items into NFTs has many benefits for both users and game developers.
One problem that valuable or rare in-game items currently have is that they depend on the player account that owns them. Let's say you own a rare item on World of Warcraft and Blizzard, the company that owns the game, decides to ban your account for any reason. Your item will be lost forever even if you worked for hundreds of hours to get it. NFTs allow you to actually own the item itself. If you have a special weapon in a game as an NFT, and your account gets deleted, you still have the weapon in your Enjin wallet, so you can sell or trade it in the future.
Another advantage of NFTs is that they can be traded directly between users without the need for a third party. Currently, most in-game items are sold through shady websites where buyers and sellers can be scammed. Direct transactions on blockchain via smart contracts have no need for a third party. NFTs are good for game developers too because they can be programmed to give the original creator of the NFT a small payment each time it is sold.
Since NFTs can be traded separately from the game itself, it is possible to create multiple games in which a particular NFT can be used. So, if you level up a character, weapon, or set of armor in one game, you could use them again in another compatible game. This gives game developers and gamers the option to explore entire multiverses of games.
What Is Enjin Coin and How Will It Perform?
Enjin Coin, or ENJ, is a cryptocurrency that developers need to use to create tokens on the Enjin platform. It is an ERC-20 token on the Ethereum blockchain. Every digital asset on Enjin, like an NFT, has a small amount of ENJ minted inside of it. The owner of the NFT can choose to melt it down to receive the ENJ inside at any point. This means that ENJ works as a store of value and that every asset on the blockchain will always hold some value.
ENJ has a max supply of 1,000,000,000 coins, and every ENJ that is locked inside a blockchain asset is removed from circulation, at least until the owner chooses to destroy it. That means that it is a deflationary cryptocurrency. The more users Enjin gets, the higher the value of their coin will become.
NFTs have recently been booming like crazy, and this has also caused ENJ to gain a lot of value. In the last three months, the price nearly tripled. However, at the moment, the NFT market as a whole seems overpriced and could fall drastically in the near future, bringing Enjin coin with it. But Enjin seems like a solid project and a good long-term investment. It could be wise to wait a few months before buying into ENJ.
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
© 2021 Krypton Currency