Enjin is a cryptocurrency that lets videogame developers create in-game items that users can buy and sell via Enjin’s proprietary marketplace. Gamers can store their items on the blockchain, giving them full ownership rights over everything they buy.
After the hype that Facebook’s metaverse announcement has stirred up, Enjin, with its native ENJ coin, is well-positioned to become one of blockchain’s leading metaverse companies.
The Enjin Use Case
Traditionally, video game companies have had full ownership over the items that users purchase. This gives the company the power to freeze accounts and confiscate items that users have paid for. Also, if the company shuts down and the game stops working, users can lose all of their in-game items. Enjin changes this.
When a video game developer uses Enjin, each item is recorded to the blockchain. When a player purchases an Enjin item, they take ownership and the developer cannot take the item away or freeze the user’s account. If a player wants to sell the item they can do so via an in-game marketplace, or by using Enjin’s marketplace.
Although other metaverse companies provide ways for video game developers to put items on the blockchain, Enjin’s key feature is that it’s plug and play, making it easy for developers to quickly integrate a blockchain ownership system into their game. In addition to in-game items, developers can also use Enjin to launch their own cryptocurrencies to support their game-world economies.
The following are a few of the advantages of Enjin, taken directly from the Enjin whitepaper:
- Developers can automatically distribute rewards to anyone with an Enjin wallet
- Users have 100% ownership over all of the items that they buy
- Enjin makes it easy for developers to set up in-game marketplaces
- Enjin has its own smart wallet where users can store items and their ENJ tokens
- In addition to in-game items, Enjin also empowers developers to launch NFTs
Even more information about the bullish case for Enjin is available in this Reddit post, which explains how projects like Enjin are helping to bring a new kind of inclusive economy to video gaming.
Gaming on Enjin
Dozens of games, including Lost Relics and Spirit Clash, are already using Enjin.
One of the most popular games on the platform is Age of Rust, which transports players to an immersive, post-apocalyptic universe where they must use combat, stealth and puzzle mechanics in order to further the story and unlock prizes, paid in BTC, ENJ and NFT items.
The following is a partial list of some of the games running on Enjin. A complete list is available on Enjin’s website:
- Space Misfits
- Spirit Clash
- Aldian Legends
- The Six Dragons
It’s not only video game developers that are using Enjin, large corporations are also getting on board:
- BMW Vantage app users can trade their rewards points for the ENJ token
- Microsoft’s rewards program Azure Heroes uses Enjin
- Atari is working with Enjin to release a series of iconic blockchain games
The ENJ Token
There is a maximum supply of 1 billion ENJ tokens. ENJ had an ICO in 2017 that raised just under $23 million.
The ENJ token is a key piece of the economy for all of the projects and games running on Enjin. When a developer wants to create an item they have to lock up a certain amount of ENJ before minting it. A gamer that wants to buy the item has to pay for it in ENJ. All transaction fees are also paid for using the ENJ token.
Locking up ENJ to mint items reduces the available supply of the token, which can help drive up prices in the long term.
The Future of Enjin
Enjin recently announced that they’re launching a new $100 million Enjin metaverse fund. The fund’s goal is to grow the Enjin ecosystem and create a rapidly expanding universe of interlocked games, NFTs and applications. All of these will be connected by Enjin making the transfer of value and items seamless and fast.
The fund will also further the Effinity blockchain’s growth, a unique protocol designed to support cross-chain NFTs and other collectibles. Ideally, Enjin will use Effinity to scale its operations and reduce transaction and marketplace fees for all users. Effinity is a Polkadot parachain and will leverage Polkadot’s interoperability standard to connect with other blockchains.
Interoperability and scaling will be crucial for the mass adoption of blockchains, so this $100 million Enjin metaverse fund is very bullish for the project’s future prospects. If Enjin can position itself as the dominant gaming platform in crypto, the upside for the ENJ token and the Effinity EFI token are huge.
This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.