What is Enjin (ENJ)?

Projects at the intersection of blockchain technology and the gaming world are redefining the ownership and use of digital assets. One of the leading names in this field is Enjin Coin (ENJ) and the powerful blockchain gaming platform Enjin behind it. With its innovative solutions in areas such as the creation, management, and integration of NFTs into games, Enjin is not just a cryptocurrency; it also offers an end-to-end digital asset ecosystem for developers and users. In this guide, you will find a comprehensive review of what Enjin Coin is, how it works, and why it holds such an important place in the blockchain-based gaming world.

Enjin's Definition and Origin

Imagine that the coins you spend to upgrade your character's armor, unlock a special skin, or acquire a legendary weapon in a game are truly yours. That is, you own these assets not only in the game but also on the blockchain... This is where Enjin comes into play. Enjin, which aims to put digital ownership in the hands of players, offers a comprehensive ecosystem that enables in-game assets to be represented on the blockchain.

So, what is Enjin platform? How does it make a difference in this field? Enjin is a comprehensive blockchain-based ecosystem that aims to create next-generation experiences for games and applications. At the core of this ecosystem lies the vision of tokenizing in-game crypto assets and ensuring that these assets belong to the user. Enjin's most distinctive feature is the integration of NFTs at the blockchain protocol level. This foundational design significantly simplifies the creation, management, and integration of crypto assets, streamlining the development process, enhancing security, and enabling true digital ownership.

Enjin's roots actually predate the blockchain world, tracing back to 2009. At that time, it was founded as Enjin Network, a gaming community platform. Gaming community management tools helped over 20 million Minecraft users stay connected and build strong networks. The company shifted its focus to the blockchain sector in 2017. This shift was realized through an Initial Coin Offering (ICO), which raised approximately $18.9 million. This ICO paved the way for the launch of the ENJ token.

At this point, it is necessary to answer the question of what the ENJ token is used for. The token in question is at the center of the Enjin ecosystem. In other words, ENJ is a governance and utility token that supports the Enjin Blockchain and its accompanying products and services. It is also worth noting that ENJ will remain an ERC-20-based token until 2023. This means that it can be sent and received using an Ethereum wallet.

The ENJ token provides the infrastructure for the production, trading, and use of NFTs in games. Developers must use Enjin Coin to mint tokens on the Enjin platform. The required amount of ENJ tokens is withdrawn from developers' wallets and locked into the assets they create. This process effectively removes the tokens from the market, creates NFT scarcity, and provides a clear use case for the token. The locked ENJ can later be recovered by “melting” (burning) the NFTs. This function allows users to recover the Enjin Coin value within their blockchain assets by destroying them. An NFT creator can “infuse” ENJ into their assets, thereby creating a reserve value. This generally benefits the NFT's scarcity.

In other words, minting blockchain assets with ENJ offers many benefits to NFT issuers and users. It instills a reserve value in NFTs, guarantees transparency and rarity, provides instant liquidity to users, and creates usage opportunities in games and applications.

In summary, Enjin is not just a blockchain; it is a comprehensive ecosystem of interconnected tools and services that enable the creation, distribution, storage, trading, and even integration of tokenized crypto assets. This ecosystem focuses on both gaming and enterprise use cases.

Enjin's History: Key Milestones

Enjin's blockchain journey has been shaped by its roots in the gaming community. Here are some highlights from Enjin's history:

2009: Enjin Network launches as a gaming community platform

Enjin was founded in 2009 by Maxim Blagov and Witek Radomski as a platform where gamers could create their own communities. Enjin Network provided a set of tools enabling users to create websites, forums, and applications for gaming clans. This platform quickly reached over 20 million users, becoming a popular community hub among gamers.

2017: The ENJ token entered the markets

In 2017, Enjin transitioned to blockchain technology and introduced its own cryptocurrency, Enjin Coin (ENJ). This transition was an important step toward realizing Enjin's vision for the tokenization and management of in-game crypto assets. The launch of Enjin Coin was announced in July 2017 and officially launched on the Ethereum mainnet in June 2018.

2018–2020: Unity SDK, Ethereum-based asset wallet, and ERC-1155 standard announced

• Enjin released the Android version of Enjin Wallet in January 2018. A few months later, the iOS version was also made available. Enjin Wallet is a secure and user-friendly mobile wallet for storing, managing, and trading NFTs and other crypto assets from the Enjin ecosystem and beyond. It is noted to be feature-rich with over 1 million downloads. The wallet's ability to seamlessly connect with games and applications is noteworthy.
• In the summer of 2018, Enjin officially launched the Enjin Platform on the Ethereum mainnet. This platform is a service that enables other game developers to issue fungible and non-fungible assets as in-game Ethereum tokens.
• In June 2018, Enjin CTO Witek Radomski submitted the first version of the ERC-1155 Multi Token Standard to Ethereum's GitHub repository. This standard was finalized a year later, on June 17, 2019, and became an official Ethereum token standard. The adoption of the ERC-1155 standard was one of the most significant milestones in Enjin's history and became a fundamental component of Enjin's NFT infrastructure.
• Enjin partnered with Unity to launch an SDK. This SDK aimed to make it easier for Unity's 4.5 million ecosystem developers to integrate blockchain into their applications and games. In 2022, new SDKs for Java, C#, C++, and Unity were released, followed by the announcement of an Unreal Engine SDK. These SDKs provide classes and services to help developers communicate with the Enjin Platform.

2021–2023: JumpNet, Efinity, and Polkadot-based NFT solutions were launched

• In June 2021, Enjin JumpNet was launched to the public. JumpNet is a blockchain network that allows users to mint, send, and trade NFTs without paying gas fees (transaction fees). This made minting low-value NFTs economically viable, expanding the use case for ENJ coin. JumpNet applies a series of limits for each address on the network to offer free transactions. JumpNet is presented as an eco-friendly solution with 99.99% less energy consumption.
• In March 2022, Enjin announced that the Efinity parachain is live on Polkadot. Efinity was designed to provide scalable, affordable, and cross-chain NFT solutions. Polkadot entered the market to support the Web 3.0 vision. It is also based on principles such as true interoperability, economic and transactional scalability, easy blockchain innovation, energy efficiency, security, and user-centric governance. The first version of Efinity focused on core functionality and chain stability. Developers can mint up to 2,200 tokens per transaction into separate wallets, and batch transfers can accommodate similar numbers. Efinity aims to create a cross-chain system capable of hosting any cryptocurrency or NFT as-is. It is also noted that users can transfer their assets to Efinity without the creator's permission.
• In September 2023, the ENJ token migrated from the Ethereum mainnet to its final home on the Enjin Blockchain. The Enjin Blockchain is a Substrate-based proof-of-stake blockchain specifically designed for NFT transactions. The ENJ Coin serves as the chain's native token.

Why is Enjin valuable?

So far, Enjin has not only been a gaming project on the blockchain, but also a technology platform shaping the future of crypto assets... So where exactly does Enjin's value come from?

It enables the tokenization of in-game assets and transfers ownership to the user

Enjin enables game developers to tokenize digital assets such as in-game items, characters, or accessories on the blockchain. These assets can be in the form of NFTs or fungible tokens. This tokenization process grants users true ownership of crypto assets. Players can truly own these assets, use them in games, trade them, or sell them. This differs from traditional game models by giving players full control over the virtual items they invest in.

ENJ tokens can directly add value to crypto assets

One of Enjin's unique features is that every token minted on the platform is directly backed by ENJ. Developers only need to lock ENJ tokens to mint these digital items. This “infusion” process embeds a reserve value into the token. The token holder can redeem this infused ENJ at any time by burning the token. This provides digital assets with intrinsic value in addition to market value. This is particularly significant for the ENJ coin gaming sector, as it brings real-world liquidity to in-game items. It also paves the way for crypto-based games and increases the rarity of NFTs.

Enabling efficient NFT usage thanks to the ERC-1155 standard

The ERC-1155 standard, pioneered by Enjin's CTO Witek Radomski, is a critical component that enhances the efficiency and flexibility of the Enjin ecosystem. Traditionally, for ERC-20 or ERC-721 tokens, a new smart contract had to be deployed for each new token “class.” However, the core concept of ERC-1155 is that a single smart contract can manage an unlimited number of tokens. This enables games to store a wide variety of items (weapons, armor, potions, etc.) under a single contract. Let's take a closer look at the features of ERC-1155:

• ERC-1155 enables bulk transfers. Multiple tokens can be sent in a single transaction. This results in significant savings in gas costs and eliminates the need to wait for each block in single transfers.
• The standard also introduced improvements for metadata (token information). Instead of storing information such as token names or symbols on the blockchain, it has been moved to external JSON files. ERC-1155 can point to an infinite number of token URIs (character strings) using the “{id}” placeholder string without storing any additional data. This significantly reduces the metadata display load for large token collections. Localization (multilingual support) is also possible thanks to the JSON format.
• Another notable feature of ERC-1155 is the ability to execute a specific smart contract function by sending a token to an address. This means that tokens can be automatically exchanged, trigger game functions, or be wrapped, converted, minted, or deposited. This capability enables the creation of reliable smart contract networks without the risk of tokens being lost.
• ERC-1155 also guarantees that event logs (the system's chronological record) will provide sufficient data to create an accurate record of all current token balances. This enables databases and explorers to create a standardized record of every ERC-1155 token and track any trading or token minting transactions.

JumpNet and Efinity offer fast, low-cost transactions and cross-chain transfers

With the launch of JumpNet, NFT transactions have taken on a whole new dimension. Users can now mint, send, or trade NFTs without having to worry about transaction fees. This greatly simplifies the user experience, especially for teams developing Web3 gaming solutions. Low-cost and fast transactions pave the way for such projects.

Efinity, on the other hand, focuses on the broader, cross-chain aspect of the business. Built on Polkadot's parachain technology, this infrastructure enables NFTs to move seamlessly between different blockchains. In other words, it provides a highly flexible and powerful foundation for cross-chain NFT solutions. Users can easily transfer their assets from another network to Efinity, and this system also increases efficiency with features such as bulk transfers.

ENJ token staking and governance are at the heart of the ecosystem

Let's talk about the role of ENJ Coin within the ecosystem. Enjin Blockchain operates using a Proof-of-Stake mechanism. This allows ENJ holders to stake their tokens, contributing to network security while also gaining the right to participate in governance processes. Additionally, staking users have the opportunity to earn rewards. Transaction fees on the Enjin Blockchain are also paid in ENJ.

Enjin has partnered with tech giants

When all these pieces come together, Enjin emerges as a powerful structure, particularly when it comes to crypto assets, NFTs, and games. Its ecosystem is also quite extensive:

The future of ENJ coin depends on how widely these technologies are adopted and the innovations Enjin offers in this field. The platform is successfully exciting users with partnerships with major brands such as Microsoft, Samsung, Unity, and Atari. Enjin's notable partnerships are as follows:

• Microsoft: Microsoft uses Enjin's technology to run its Azure Heroes social rewards program. This program rewards contributors with digital badges.
• Samsung: Samsung has integrated the Enjin Wallet with the Blockchain Keystore featured in the Galaxy S10 model, enabling users to securely store blockchain-based assets.
• Unity: Enjin launched an SDK to make it easier for Unity's 4.5 million developers to integrate blockchain technology into their games.
• BMW: BMW partnered with Enjin to enable users to convert their BMW Coin reward points into Enjin Coin through the Vantage app.
• Atari: Enjin has partnered with iconic gaming brand Atari to enable Atari's integration into blockchain-based games.
• Ubisoft: Ubisoft has partnered with Enjin to integrate blockchain technology into its games.

Who is the Founder of Enjin?

Just as important as the good idea behind every strong project is knowing the right people who bring that idea to life. So, who is the founder of ENJ in this context? Enjin's founders are Maxim Blagov (CEO) and Witek Radomski (CTO). The duo was at the helm of Enjin, which began as a gaming community platform in 2009; in other words, the gaming world has always been at the core of the business. CTO Witek Radomski, in particular, is a prominent figure in the blockchain space. This is because he is the developer behind the ERC-1155 standard, which enables the efficient use of NFTs today. First announced in 2018, this standard was officially adopted in the Ethereum ecosystem in 2019, as mentioned earlier, and has become one of the cornerstones of Enjin's NFT infrastructure.

On the other hand, Maxim Blagov is not only a co-founder of Enjin, but also has over 18 years of experience in creative management, software project management, and marketing. Currently serving as CEO, Blagov holds a bachelor's degree in Computer Science from the University of Technology Sydney in Australia.

Frequently Asked Questions (FAQ)

In conclusion, Enjin Coin (ENJ) is not just a cryptocurrency, but the “fuel” for a comprehensive ecosystem aimed at transforming the gaming world and crypto asset ownership. Innovative standards like ERC-1155, scaling solutions, and ENJ's role in adding value to crypto assets make Enjin a key player in this field. We hope this guide has answered many of your questions about Enjin and ENJ. But if it hasn't, you can find frequently asked questions below:

• What is Enjin Coin and what problem does it solve? Enjin Coin (ENJ) is a blockchain infrastructure that enables the tokenization of crypto assets within games and applications. It enables players to have true ownership of in-game assets and aims to make these assets secure, transparent, and easily tradable.
• What is the purpose of the ENJ token?: ENJ is used within the Enjin ecosystem to create NFTs, stake, pay transaction fees, and vote in governance. It is locked into NFTs, giving them intrinsic value.
• How are NFTs created with Enjin? Developers lock a certain amount of ENJ tokens through the Enjin platform to mint NFTs. The assets created through this process are both valuable and easily manageable through the Enjin wallet.
• What are JumpNet and Efinity? JumpNet is an Enjin network that enables fast and free NFT transactions without gas fees. Efinity is a parachain developed on Polkadot that offers cross-chain NFT compatibility. Both are designed for Web3 gaming solutions.
• What does Enjin bring to the gaming world? Enjin enables in-game items to be converted into NFTs, allowing these assets to be bought, sold, and used across different games. This makes the gaming experience more personal, valuable, and lasting.

To better understand Enjin Coin, which sits at the intersection of the gaming and NFT worlds with blockchain, continue following our JR Kripto Guide series.