Non-fungible tokens (NFTs) have quickly become the most popular digital assets in the industry. For some reason, these tokens have captured the imagination of retail investors and attracted more capital than most crypto startups in recent years.
Unsurprisingly, developers are now working on blockchain-based solutions that service this growing sector. Enjin Coin is one such solution. It is an Ethereum-based ERC 20 token created with the sole aim of powering an ecosystem that leverages NFTs in gaming and other distributed apps. Here’s a closer look at this week’s token.
Launched in 2017, Enjin is an ERC-20 compatible token. What this means is that it can be sent and received on any Ethereum wallet
Enjin is backed by software that makes it easy for people and businesses to manage virtual goods on the Ethereum blockchain. In recent months the token has become popular with NFT traders.
How it works
Enjin, the company behind the blockchain-powered project, operates an array of blockchain products, including an NFT marketplace wallet and a crypto developer platform. The company has already released software development kits allowing users to develop digital assets on the Ethereum blockchain.
The digital assets being developed on the Enjin software are increasingly being integrated into games and apps. However, the use of blockchain technology to manage in-game items seems to be a big hit. This has helped reduce the high fees and fraud that has been the biggest bottleneck in the transfer of virtual in-game goods and collectibles.
Enjin has carved a niche for itself by making it easy for people to manage and store virtual goods from any project. It is mostly being used in the gaming industry to represent unique in-game items such as swords, accessories and characters
Each asset minted on the Enjin software is customized to fit the desired platform. It is also recorded on a smart contract, thereby giving it all the advantages of cryptocurrencies around speed, cost, and security. To create and store in-game items, Enjin allows developers to design in-game items using SDs already on offer.
Enjin is the native coin that powers the Enjin ecosystem. The token can be bought, sent, and received using the Ethereum wallet. The coin came into being through an initial coin offering that raised $18.9 million. The funds have since been used to develop and expand the platform.
The coin acts as a medium of exchange on the network allowing users to buy items listed for sale on the Enjin marketplace. In addition, one must have some ENJ tokens to transfer some items to other players. Additionally, the token is used to back the value of all Non-fungible tokens developed on the Enjin ecosystem
The ENJ token can be bought and sold on all the major cryptocurrency exchanges, including Coinbase Binance, Gemini, and Kraken. The Enjin Network gaming platform, which has been around since 2009, is the main driver in the growing token value.
The gaming platform has over 20 million users, which is why the company’s blockchain projects have had such success in gaining quick traction. Over the past year, ENJ tokens have appreciated over 1,833% in value and the ecosystem is now worth over $2.3 billion, making it one of the largest NFT platforms in the industry.
Enjin could keep gaining traction if NFT and games continue to collide in the years ahead.