Interpreting Enjin, the flagship of crypto games: What you need to know about the new trends of Metaverse + NFT

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Wu Shuo Author | Wu Yue

Editor of this issue | Colin Wu

Metaverse ignites the industry

Recently, a sci-fi concept has set off the technology industry, it is "Metaverse".

This concept originated from Snow Crash, a science fiction novel published by American writer Neal Stephenson in 1992. “Meta” means “beyond” and “meta”, and when combined with “Universe”, it becomes “metaverse”.

The Metaverse we are talking about now refers to an immersive virtual space where users can carry out cultural, social and entertainment activities. The core of the Metaverse lies in the carrying of virtual assets and virtual identities. It can provide users with rich consumer content, a fair creation platform, a reliable economic system, and an immersive interactive experience. Unlike traditional games, users can experience different content, make different friends, create their own works, and carry out a series of virtual activities in the Metaverse.

Building the Metaverse requires four major technical supports: blockchain, games, network computing power, and VR (virtual reality technology). As one of the indispensable technologies for realizing the Metaverse, the significance of blockchain in the Metaverse is to ensure the security of users' virtual assets and virtual identities, realize value exchange in the Metaverse, and ensure the transparent execution of system rules. Players will not become puppets in the hands of the game planners and programmers like in traditional games, and truly upgrade the Game to Experience.

In traditional centralized game rules, there is no transparent economic system. Players who pay for games get pleasure by bullying non-RMB players, but they are also harvested by the endless inflation in the game. The emergence of blockchain ensures that the circulation of virtual assets can exist independently and decentralized, and the rules are fair and transparent through open source code.

Enjin, which we will discuss below, is a leader in the blockchain field that leads us to the world of the metaverse.

Who is Enjin

Enjin was first founded in 2009 as a company that provides website creation and hosting services for gamers. Enjin is headquartered in Singapore.

Enjin pioneered the non-fungible token (NFT) industry in 2017, wrote the advanced ERC-1155 Token standard, and launched the first NFT creation platform. Enjin will strive to build an ecosystem of integrated products that make it easy for everyone to use blockchain and NFT for development, trading, monetization, and marketing.

Among them, Enjin's Token ENJ can be used as the raw material for casting "game props" (NFT), which can be bought and sold on exchanges, and can also be used to make weapons, props, digital artworks and everything else you can imagine. The game world built by Enjin enables gamers to use specific blockchain assets in every game in the game multiverse.

Enjin’s Innovation — ERC-1155

Blockchain games need game props and multiple props need to be sent to multiple accounts, and each time a contract is called, it is very expensive. For example, if there is a game with 100,000 daily active users and 1 million registered users, giving each person a sword when the game is upgraded is equivalent to transferring money to each of the 1 million people. Based on the current transfer fee on the Ethereum chain, it costs several million US dollars, which is a considerable expense for the game company.

To address similar issues, Enjin co-founder and CTO Witek Radomski created the semi-homogeneous ERC-1155 token standard. Compared to the well-known ERC-721 (NFT), ERC-1155 no longer represents a specific item, but a category. For example, a coat that summarizes game props is a category. When transferring, set the number of coats. In this way, you only need to call the contract once to send multiple quantities of props. For example, each user will be given a sword when upgrading the game mentioned above. This is

A category. There is no difference between tokens in this category, just non-homogeneity between categories.

In addition, ERC1155 can meet the flexible needs in different scenarios, such as transferring multiple assets of different categories at the same time, or transferring multiple assets of the same category, such as 10 coats + 5 hats, which can be completed in one transfer. This greatly improves the speed and convenience of transfers.

Enjin Ecosystem

Built on blockchain infrastructure, the Enjin Ecosystem consists of the Enjin Platform, Marketplace, Wallet, Beam, and other tools and services that enable gaming companies to gain a competitive advantage and enable continuous innovation.

Platform

The Enjin Platform is a blockchain PaaS (Platform as a Service) that allows users to create and manage blockchain games without having to build and maintain any blockchain infrastructure or write any blockchain-related development code. It is a powerful set of components for creating disruptive blockchain games, an integrated blockchain game development platform consisting of a trusted cloud, platform API, wallet daemon, and blockchain SDK. At the same time, developers can also use a simple visual interface to create and manage homogeneous and non-homogeneous tokens.

Wallet

Enjin has developed a wallet that allows users to trade cryptocurrencies and NFTs. While ensuring basic security, it can also store most cryptocurrencies and NFTs on the market (including ERC721 and ERC1155) and has trading functions. In addition, the wallet can also be used to browse and interact with existing DApps.

Marketplace

In the Marketplace, users can use tokens (ENJ) to buy and sell rare and unique NFTs. The current trading volume of the market is 44.4 million US dollars, with a total consumption of tens of millions of ENJ tokens, a total of billions of NFTs and commodities, and nearly completing one million asset transactions.

Beam

In order to promote the development of each blockchain game community, the initiator can embed NFT into a QR code (including quantity and type) through Beam and publish it on any media. The audience can easily obtain NFT rewards by scanning the QR code through the wallet. This can attract more fans for the game community and help the marketing of the game community.

Capacity Expansion Solution JumpNet

Due to the low efficiency of Ethereum on-chain transactions, ETH 2.0 is still a long way off. Enjin provides a free and fast expansion solution JumpNet for Ethereum and integrates it with the above existing Enjin products.

NFT public chain Efinity

Despite the improvements of JumpNet, NFTs will continue to be plagued by problems. In order to scale, NFTs need to become fully interoperable and chain-independent. Limited by Ethereum's contract interaction speed and high transaction fees, Enjin needs to find a fertile soil for NFTs to grow better. Thus, Efinity was born. It is built on the Polkadot parachain and its mission is to build a scalable cross-chain network to make the creation, use and trading of NFTs easier and faster, thereby increasing the transaction volume and usage of NFTs. According to current benchmarks, Efinity will process up to 700-1000 transactions per second (TPS); in comparison, the Ethereum network currently operates at a speed of about 15 TPS. It is a highway for cross-chain tokens, and any NFT on any chain can be transferred to Efinity, helping to accelerate the arrival of the world's advanced virtual economy.

As Enjin's long-term NFT expansion solution, Efinity aims to incentivize stakeholders who help the ecosystem grow. ENJ coin holders can stake their tokens on the Efinity chain node and then obtain EfinityToken (EFI) as passive income. The pledged ENJ can still be used in the marketplace and other applications, but if the token is transferred or destroyed, the pledged ENJ will be automatically unstaked.

In addition, Enjin is developing a new standard called Paratokens that is compatible with Polkadot and Kusama. Efinity Token EFI will be the first paratoken. EFI has a total of 2 billion and will be used by users to pay transaction fees, vote on governance events, and maintain the liquidity of tokens.

4. Enjin’s Value and Development

Enjin's blockchain technology provides a decentralized clearing and settlement platform and value transfer mechanism, which can ensure the ownership and circulation of the value of the metaverse, thereby ensuring the stability and efficiency of the economic system, and ensuring the transparency and deterministic execution of rules. Decentralized virtual assets can circulate across platforms and independently of the content itself, becoming more "real".

At the same time, Enjin has changed the business model of virtual creation, and virtual goods have changed from services to trading entities. In the traditional model, game equipment and game skins are essentially a service rather than an asset. They are not limited in quantity and the production cost tends to zero. Enjin's user creators can directly produce and trade virtual goods through ENJ, which is independent of the centralized game platform, and users can also freely trade related NFT assets.

There is no doubt that Enjin is the leading developer in the blockchain gaming industry and has created the most powerful platform for game developers. However, Enjin faces stiff competition from Axie, ImmutableX, Flow, and others in designing a scalable blockchain for NFTs. Enjin has the potential to become a giant in the crypto gaming space, but it still needs to continue to attract new game developers, quickly build out its scaling solutions, and continue to develop its product suite.

(Disclaimer of Interest: The author of this article personally holds some Enjin Tokens, but has no business dealings with Wu Shuo. The content of this article does not endorse any investment or business operations. Readers are requested to strictly abide by local laws and regulations)