There is a lot of hype around crypto gaming and NFT’s right now. Enjin is looking to elbow its way in and dominate the space.
It’s too early to tell if Enjin is a shitcoin, but it has a lot of potential.
Keep reading, and I’ll share what Enjin does, what Jumpnet and Efinity are, the 5 steps of the Enjin coin, if it can be staked, its proof of authority crazy concept, and 6 worries you should be aware of.
What the Hell Does Enjin Do?
According to the white paper HERE, Enjin is the largest gaming community creation platform online. They have created a variety of assets that connect gaming with NFT’s.
Enjin is a software that allows users and designers the ability to create NFT’s for gaming. In case you have been living under a rock and don’t know what an NFT is, it’s “rare shit” that you can own online. The nerdy name is None Fungible token (it’s unique shit).
The cool thing is Enjin has created a bunch of stuff for its network.
Enjin has a marketplace where users can trade NFT’s. Right now, the leading marketplace for NFT’s is Opensea. Opensea has had some trouble in the past, and there are scams on the marketplace. If you want to learn more about this, you can click on the link HERE.
They have created the Enjin Wallet that allows someone to hold and manage a variety of crypto assets.
Enjin also has something known as Jumpnet, which offers transactions without “dreaded” gas fees. You could think of it as a private party on the Ethereum blockchain. Instead of many transactions being recorded, there is just 1 large one (which saves everyone money).
They have also created Efinity, which is a cross-chain blockchain that runs on Polkadot. If you’re not sure what the hell Polkadot is, it’s an interesting project that looks to connect many blockchains together.
You could think of it as a dating show, such as The Bachelor, except their blockchains, not people. You can learn more about Polkadot from this post HERE I made.
This might just blow your mind, but this Efinity cross-chain has its own token called EFI, or the Efinity token (I know crazy stuff).
They have developed something known as Beam. Beam basically sends NFT’s and crypto to other people (like you beamed it).
You would scan a QR code, and then you would receive the blockchain assets immediately if someone wanted to send them to you. In case you don’t know what a QR code is, it’s a crazy symbol that you take a picture of with your phone.
You have to admit they did create some cool shit, right? (Hey, shit is the theme of this post).
What is the Purpose of the Enjin Coin (ENJ)?
- Developers purchase Enjin coins.
- Then the developer turns Enjin coins into their own tokens, called minting.
- Players in the game acquire the coin by doing stuff.
- Players trade the coin.
- Players recycle the coin back into the network by melting. Change one coin for another.
The purpose of the Enjin Coin (ENJ) is to transact in their ecosystem.
Out of the total supply of 1 billion Enjin Coins, 853 million are already in circulation. If a game uses the Enjin coin to create its own digital assets, then that would lock up the Enjin coin, taking it out of circulation.
When coins are locked up, this can be great news for the price. It’s almost like reducing the supply of it, and a lower supply and higher demand means the price can increase (good news if you own it).
Can Enjin Coin be Staked?
Enjin coins can be staked using Efinity, cross chained that is linked to the Polkadot network. When you stake Enjin coins (JENJ), you would be paid in Efinity tokens (EFI).
Enjin uses the JENJ token, which is an ERC20 token that runs on the Ethereum blockchain.
An ERC20 token stands for Ethereum Request for Comment, and I’m not sure what 20 means. It’s like WordPress for building a website that makes it easy for wallets and exchanges to take it.
Enjin uses something known as Jumpnet for transactions. What is crazy is that Jumpnet uses something called proof of authority, which is different than proof of work or stake. Blockchain really is based on “skin in the game,” meaning you have to risk something.
- With proof of work, you’re risking work.
- Proof of stake is that you’re risking money.
- Proof of authority, you’re risking your reputation.
You would risk your reputation by staking your identity. Validators need to be verified, trusted, and picked by the network; there is a small validator group.
A validator just validates the block, and all the transactions are true based on consensus (everyone agrees).
Proof of Authority network is usually more centralized because it’s harder to be a validator. Validators in a proof of authority blockchain usually have to pass background checks, interviews, and checks to ensure they have authority (like a judge).
Also, since “many things are going green,” Enjin has made the Jumpnet carbon neutral (Yay).
Conclusion
The Enjin project has a lot of potential and already has over 30 games under its belt. If you think gaming and owning items in video games will grow (I do), then there is a lot to be excited about with Enjin.
The more lockdowns occur, the more people will probably escape into a virtual world (I think). Even Facebook has changed its name to META because it is bullish on the Metaverse.
I’m not sure what to think of the Metaverse concept. I’m probably more bearish because I love the real world, but we live in crazy times, and anything can happen.
Who would have thought people would spend $300,000 for a picture of a bored ape right?
They also have some strong support from companies like Samsung, Microsoft, and Ubisoft that are partnering with them.
The bad news is that there is a HUGE supply of 1 billion coins. Another thing to be aware of is that around 10% of the supply went to Wales. Wales are people with big pockets who have a lot of influence and can manipulate the price.
Another negative with this project is that it’s dependent on Ethereum and Polkadot. Plus, they have Jumpnet, Enjin, and Efinity all tied together, and there are a lot of moving parts.
Efinity also has some issues where only 20% of its tokens were sold to regular investors (not whales). Lastly, gaming NEEDS to be fun, and Enjin needs a breakout game that builds hype around it (like a Fortnight or something).
Nobody knows what the future of crypto holds, and that is the exciting part. One thing that is a good idea is to diversify your income.
Don’t rely on 1 thing.
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You can do it anywhere, anytime, around your schedule, in nearly any niche, with a very low startup cost, and it can be a ton of fun.
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I hope this blog post on whether Enjin is a shitcoin was helpful to you. Bye for now.