Its software provides a decentralized service through which developers can create, distribute, and trade virtual assets like non-fungible tokens (NFTs). The system was built specifically with gamers in mind, since blockchain technology can allow for proven ownership of digital property, a helpful tool for in-game items.
Think about a magical pendant worn by an avatar or a sword with special attributes. A game developer may want to limit the number of such items in their game, or even create them as one-of-a-kind. Maybe they intend their in-game items to be used across multiple games. Or they may want to transfer large batches of these items. With Enjin, this kind of functionality is possible through tokenization of items as blockchain assets.
Towards this goal, Enjin offers several products including a wallet to manage NFTs and crypto, a platform that integrates assets into games and other blockchain apps, and a marketplace where users can buy and sell their NFTs.
Enjin Coin (ENJ) is an Ethereum-based token that helps govern the network and uphold the value of assets. ENJ can be used across various games using the wallet as an in-game currency and to mint virtual goods.
- Enjin is a platform that provides the tools for developers to build games using the Ethereum blockchain, while also providing players the opportunity to own and trade their in-game items.
- Its design is built on the ERC-1155 multi-token standard, which allows for the creation of an infinite number of fungible, non-fungible, and semi-fungible tokens through one smart contract.
- ENJ is an Ethereum-based token that backs the value of assets in the ecosystem since any asset created using Enjin requires storing ENJ in a smart contract.
How was Enjin developed?
Based in Singapore, the company was founded by Maxim Blagov and Witek Radomski, who now serve as the CEO and CTO, respectively. Radomski helped to create the ERC-1155 token standard, which is a critical building block in the platform’s design.
Although most blockchain companies are relatively new, Enjin was launched in 2009. The network was first developed to support the worldwide gaming community, and it pivoted to using blockchain and crypto in 2017. The company then shifted its focus to creating an ecosystem in which users owned their assets and could freely trade and market them using its platform.
In terms of fundraising, 400 million ENJ were sold in a token presale in September 2017 for a total sum of 38,800 ETH—worth $12 million at the time. Over the next two months, the team’s crowdsale raised an additional $23 million and also received support during several funding rounds from venture capital investors, and it raised $40 million more through its Polkadot parachain project Efinity.
By early 2022, the platform boasted over 1 billion assets created using its platform.
How does Enjin work?
The ERC-1155 token standard
The blockchain assets built on Enjin derive their functionality from the ERC-1155 token standard.
Otherwise called the multi-token standard, ERC-1155 provides the framework for creating a nearly infinite number of both fungible and non-fungible tokens in one smart contract. Thus, ERC-1155 tokens can also be produced, sent, and traded through bulk transactions, significantly reducing gas and transaction fees.
ERC-1155 allows for a new kind of token utility called semi-fungibility, where each token can change states (from fungible to non-fungible) over their life cycle. This kind of flexibility is vital for the creation of versatile in-game items that was not possible using older token standards.
There are several backend components of the platform that give its users the ability to build, play, and interact with games:
- Trusted Cloud – Houses the testnet and mainnet and connects users’ game accounts with their blockchain accounts.
- Software Development Kits (SDKs) – Provide developers with the tools they need to code games using different programming languages, including Enjin’s smart contract language, CryptoItem, which allows users to create and destroy (burn, or “melt”) assets. In order to generate new tokens (like NFTs), ENJ must be sent to the contract which stores the coins. Holders of assets can then melt them to retrieve the ENJ from the contract.
- Platform API – Allows users to query and modify data on the blockchain through Enjin.
- Enjin Wallet – Helps facilitate the transactions that are necessary to run blockchain games and to automate the gaming processes. The wallet allows players to send/receive payments, melt ERC-1155 assets to receive ENJ, and even convert tokens without the need to go through an exchange.
A prime example of the platform’s usefulness was released in 2020. “EnjinCraft” was an open-source plugin that allowed players to port their Ethereum-based assets into the popular Minecraft game, creating the opportunity for users to truly own the in-game items they created. Subsequently, gamers could even buy and sell these Minecraft items through its marketplace.
JumpNet scaling solution
JumpNet is a private bridging network that uses a Proof of Authority (PoA) consensus mechanism to create an ecosystem of gasless transactions for Enjin.
PoA is a form of the more commonly known Proof of Stake (PoS) consensus mechanism. However, instead of staking cryptocurrency coins, PoA uses a relatively small number of trusted validators who are known to the system and who are incentivized to process transactions honestly or else suffer from a poor reputation and lose the privilege of continuing to operate. In other words, in PoA validators stake their reputation.
JumpNet acts as a sidechain on Ethereum, and its goals are similar to other sidechains like Polygon: create a more efficient user experience thanks to reduced fees and faster user experience. As is the case with Polygon, Enjin users only have to bridge their tokens to JumpNet in order to benefit from its advantages—and this can be done right from their wallet.
How is the ENJ token used?
ENJ is an ERC-20 token on the Ethereum blockchain. It is primarily used as the parent currency in the ecosystem’s games and communities. Along with its use as a simple means of payment and exchange, ENJ is also used to mint assets.
If a user wants to create a magnifying glass for a detective in their game, they send ENJ to one of the smart contracts where it’s locked in exchange for the NFT that represents their asset. This backs the asset with a certain amount of value, both establishing that NFT’s worth on the open market and removing ENJ from the circulating supply.
There is a maximum supply of 1 billion ENJ tokens, of which 40% were sold by the team during the token presale in 2017, another 40% were sold via the crowdsale, 10% were allocated to the development team and advisors, and 10% were reserved for community incentives and marketing. The team’s tokens underwent a two-year vesting schedule, and advisor tokens were locked for 2 months.
By early 2022, 934 million tokens (approximately 93% of the total supply) were in circulation, held by more than 170,000 wallets.
How to buy ENJ
You can buy the Enjin coin on Bitstamp. Sign up for a Bitstamp account and start trading ENJ today!
Disclosure: Bitstamp is licensed to engage in virtual currency business activity by the New York State Department of Financial Services.