What is Enjin (ENJ)? Your ultimate guide
The Enjin platform is helping fuel the play-to-earn gaming revolution
Gaming and the play-to-earn model is in the limelight of the crypto sphere at the moment, with projects such as Axie Infinity, Decentraland and The Sandbox taking centre-stage. Enjin is a platform designed to fuel this disruption in the gaming and crypto industries.
As a developer, turning your traditional game into one that integrates NFTs may seem like an insurmountable challenge. Enjin supplies developers and businesses with the tools to mint their own NFTs, while it provides players with a platform to trade.
If you are interested in developing your own NFT game or an investor looking to start trading, join us as we delve into the two important questions: What is Enjin (ENJ) and how does Enjin work?
What is Enjin (ENJ)?
Enjin did not start off as a crypto project. Instead it was a gaming community platform. In 2009, Maxim Blagov, the now chief executive and creative director of Enjin, teamed up with the man who is now its chief technology officer, Witek Radomski, to create the Enjin Network. This network organically grew a huge userbase of more than 20 million users across 250,000 gaming communities.
So what is enjin coin used for? Blagov and Radomski started to notice a problem in the industry that could be solved by the blockchain. Bryana Kortendick, vice-president of operations and communications for Enjin, told Forbes: “Most games use an internal, centralised database to represent items. While this is fast and cheap, players are on the losing end, as they don’t truly own their gaming items or the progress they make in-game. If the game shuts down, all progress and items are lost. Decentralised NFT items give you true ownership of those items.”
The team started building a solution to this and in 2017 launched its initial coin offering of enjin coin (ENJ). This began to pioneer the platform to what it is today, an ecosystem of non-fungible token (NFT) products that makes it easy for traditional game developers to develop, trade, monetise and market through the blockchain.
Enjin is software built on the Ethereum blockchain that markets itself to developers and individuals. It gives developers the ability to create their own NFT virtual goods and integrate it into their platforms. It has created a suite of software development kits to make this easier, which are development tools with an easy to navigate visual interface helping developers to create blockchain assets.
It also gives users a platform to manage, trade and sell their NFTs. This can be done through selling it on Enjin’s marketplace to other users or melting the NFT, essentially destroying it and turning it into ENJ. Enjin has its own smart wallet to make this process easier where users can view all of their items across different games or platforms.
Enjin is primarily used to store and manage virtual items in games. These can range from potions and swords to in-game currencies. More than 70 games use it across multiple different genres.
It is not just gaming, however, Enjin is being used to create tokens for sports, art and music. One of its most notable partnerships is with Microsoft on a digital rewards program called Azure Heroes. This program is used to inspire developers by rewarding them with ‘badger NFTs’. These are rewarded to people for a range of actions, from building sample code to organising events.
What is enjin coin used for?
The enjin cryptocurrency is an ERC-20 token, meaning it is built on the Ethereum blockchain, but enjin coin was built for more than just investing. Enjin (ENJ) was designed to be integrated into games. Players can use enjin coin as a currency or to trade NFTs.
Enjin (ENJ) is used to create the NFTs as well. Developers must purchase the enjin cryptocurrency and use it to mint the in-game item. Players can chose to melt back down the item into the original ENJ. This gives the items real-world value, as players can chose at any time to melt it.
It is not just ENJ powering the platform. Enjin uses a dual-token system. While ENJ is used to power the NFTs, EFI is for transaction fees, rewards, and governance on the upcoming Efinity network. Efinity is part of the ‘Enjin ecosystem’. It is an NFT platform built on the Polkadot blockchain. The new platform is designed to avoid the crippling fees and inflexible smart contracts of Ethereum. The network is not publicly available as the project is currently hosting a crowdloan to secure a slot for Efinity on the Polkadot blockchain.
EFI launched on 4 August 2021 at $3.02 and immediately crashed down to $0.77 on 5 August. It has made some gains since then and as of 1 December it was priced at $1.79.
EFI has a maximum supply of 2 billion tokens and as it just launched it is nowhere near that limit. At the moment, there are 169 million EFI in circulation.
ENJ coin is a lot rarer compared with EFI, it only has a limit of 1 billion tokens and more than 80% is already in circulation. ENJ launched on 1 November 2017 at $0.02 and only got past the $1 barrier this year. So far 2021 has been a bullish year for the coin, with it seeing a spike in spring that reached $3.45 on 9 April. ENJ has kept the momentum going and achieved an all-time high last month of $4.85. The price has fallen slightly since and as of 1 December ENJ is at $3.55.
Enjin recently announced it was partnering with Amasa to deliver gaming and NFT micro income streams. Amasa is a platform built to capitalise on the potential of micro income streams from Web3, the metaverse, and decentralised finance.
By teaming up with Enjin, Amasa users will be able to reap the benefits of the NFT eco system. It will allow them to combine these earnings with other income streams including crypto, data sharing and the Internet of Things.
The Amasa app plans on launching in the second quarter of 2022 on Polygon. It wants to integrate other networks quicky with Enjin’s Polkadot network Efinity as a priority. The platform is also developing a discovery dashboard to showcase relevant projects. This will drive awareness and bring new users to the Enjin ecosystem.
There has been a recent rise of crypto gaming with the play-to-earn model compelling players to get involved. Platforms such as Axie Infinity, Decentraland and The Sandbox that offer a marketplace to profit from earned NFTs have all seen massive growth. There may be a market for Enjin, but can it compete with other crypto gaming projects?
SA Shares, a South African finance publication, said: “Enjin is currently the leader in this field.” It pointed to the large gaming community the network had gathered before ENJ, including the 60 million pageviews, along with 19 million registered users and more than 300,000 gaming websites. This may assure investors that the leading team understands its audience.
SA shares said: “Even though the project is still young, Enjin has a strong, dedicated team along with a plethora of resources, making it an ideal investment avenue.”
Securities.io, a financial publication, argued that Enjin has a strong future. It highlighted the growing demand for NFTs, especially in the gaming sector. The publication said: “Enjin is ahead of the curve in providing a way to streamline the integration of these assets. For these reasons, you can expect to hear a lot more from this project in the coming weeks and months.”
There are 838 million ENJ in circulation out of the maximum supply of 1 billion tokens.
Like its parent blockchain Ethereum, enjin coin can be mined using the proof of work protocol. Users can mine ENJ by validating transactions through solving complex computational puzzles.
Users can purchase enjin coin on various cryptocurrency exchanges, including Huobi, Binance, and Bitstamp. You can also melt down NFTs that were created using the Enjin platform into the native cryptocurrency. Remember you should always do your own research before investing and never invest more than you can afford to lose.