24
Jan
20

Enjin Coin – A helpful guide of the gaming cryptocurrency

Most online games are available for free, but the gaming companies make money through small repeat purchases made inside the games. Unfortunately, the existing mode of online transactions is not secure enough. Stats show that for every single legitimate transaction there are 7.5 fraudulent ones. This makes the introduction of cryptocurrency to the gaming industry perfect sense and this is exactly what Enjin, the largest gaming community platform, has set out to achieve.

 

The Singapore-based IT firm is a popular Content Management System (CMS) for the online gaming community. With its humble beginning in 2009, Enjin has made a significant footprint in the gaming industry. Today the firm has over 20 million registered users and 250,000 gaming communities. Enjin cooperates with several major developers of online games like World of Warcraft, Minecraft, Guild Wars, Rust, etc. In 2017, they began their foray into the cryptocurrency world with Enjin Coin.

 

What is Enjin Coin?

 

Enjin Coin is Enjin’s native cryptocurrency that fuels the Enjin blockchain-based ecosystem. It is an ERC-20 based crypto coin developed to tokenize virtual goods on the blockchain. It is designed to use solely in online gaming.

 

Enjin Coin utilizes the Ethereum’s native smart contracts for security as well as a suite of Software Development Kits (SDKs) to integrate across different gaming platforms and communities. The basic idea is to simplify the process of paying for services or accesses on the gaming platform with increased trust and security.

 

Enjin Coin has a fixed supply. Game developers can acquire these coins and use Enjin’s SDK to build their game. For every item or virtual asset in the game, developers decide to cap a certain number of ENJ coins, i.e. the in-game assets are backed by ENJ token. The Enjin Coin follows a stored reserve value formula. When new digital/virtual items are created more free tokens get locked up, so the available ENJ token supply gets reduced and therefore increasing its value. These ENJ-backed assets get changed into ERC-1155 type token, an advanced version of an ERC-20 token.

 

The Enjin Coin Lifecycle – How it Functions?

 

This is probably the most important question you may ask that showcases the versatility of ENJ coin. Let us explain how ENJ coin work within the Enjin ecosystem.

 

    1. Acquisition: Game developers need ENJ tokens to develop their game and offer various rewards within it. They can acquire ENJ coins in the following two ways –
    1. Officially partnering with Enjin
    2. Purchasing from a crypto exchange
    2. Minting: Minting means assigning the acquired ENJ tokens to in-game currency or items (such as weapons, heroes, special cards/spells, etc.) as per value. This turns them into ERC-1155 tokens. The game itself can be minted as well.

    The smart contracts created during minting enables users to create and manage customized digital assets based on various data points like name, icon, exchange rate. Once these assets are created, the Mint smart contract is cloned and recorded using registry smart contract.

 

    3. Gaming: There are multiple ways a gamer can gain these ENJ-based digital assets.
    1. Earn as In-Game Rewards – In the game, gamers can get rewarded when they, for example – finish a quest, unlock hidden treasures, cut down trees and get a tokenized branch, etc. The games also allow earning in-game currency as referral bonuses.
    2. Purchasing from a Crypto Exchange – Gamers can buy such assets inside the game ecosystem and can transact those across official marketplaces from the game developers or with peer-to-peer exchanges. They may make such transactions either directly or through approved, regulated secondary marketplaces.
    4. Trading: The Enjin Coin-based assets earned inside the game are stored in the Enjin wallet instead of the game itself. A user can trade the custom coins, a virtual item for item, an item for ENJ and vice versa across multiple communities and platforms, thus offering easy liquidity.
    The intrinsic value of the asset in terms of ENJ might vary widely depending upon its rarity, demand, utility or other values. One such use case would be to sell a digital asset earned in one game to a much higher price in another game.

 

    5. Melting: Melting ensures that players are never stuck with their digital assets. Melting means converting your digital assets back into ENJ tokens whenever you need to. This is another way to earn ENJ tokens.
    However, the melting rate i.e. number of ENJ tokens earned back may differ from its original ENJ value depending on the choices made by the game developer. Though the trade value can never be below 50 percent of the minted value. Melting is a kind of insurance policy and offers incentives for most gamers.

 

Advantages of Enjin Coin

 
Enjin Coin offers several benefits including –

    1. It offers transparency of transactions cutting down online fraud.
    2. Enjin Coin brings real-world value to gaming, something that was missing earlier.
    3. ENJ offers complete customization and management opportunities for virtual goods through SDKs for each game made on the same platform.
    4. Enjin acts as a decentralized platform to help earn, trade and distribute virtual items.
    5. It charges a very low transaction fee thanks to blockchain tech.

But the main advantage of blockchain gaming is the ability to create virtual items that can be used across different games by different developers. This happens because all items are stored in the same blockchain. Hence players can carry their items between games as if it is a single universe a.k.a the multiverse.

 

Cross-game item support gives valuable benefit to both developers and gamers

 

The developers gain two things –

 

    1. Additional exposure from games taking part in the multiverse
    2. Increased player retention who want to test out the items.

 

Considering how valuable player attention is in this age, this becomes an extremely important advantage of blockchain gaming. Having players check out how items work in a different game drastically improves player interest.

 

For gamers, possessing cross-game items is far more valuable than owning items of a single game. These types of items offer long-term value since the same items can be used in other games. So the effort and resources used to earn valuable items in a game are not wasted. This way players can grow their online portfolios.

 

The Enjin Ecosystem and Its Products

 

After Enjin introduced ENJ, the firm went on to develop several open-source software. This enhanced the importance and use of cases of ENJ coins. The Enjin ecosystem consists of various components that collectively make Enjin Coin a true performer.

 

    1. Enjin Network: It’s a content management system (CMS) and a social platform concerning gaming protocols and platforms.

 

    2. Enjin Wallet: This is the official wallet of Enjin to store crypto coins, blockchain assets, and collectibles. We have explained it in detail later in the article.

 

    3. EnjinX: This is a web-based universal blockchain explorer to view transactions and items.

 

    4. Efinity: This is how Enjin tackles the scaling problems in the Ethereum blockchain. Efinity has numerous game channels in which a game can perform a near-infinite amount of transactions rapidly at almost zero cost. It supports various Ethereum tokens and provides end-to-end e-commerce solutions.

 

    5. Enjin Beam: This feature allows for the seamless distribution of blockchain assets.

 

    6. Unity Plugin: The plugin allows game developers to directly implement and issue ENJ-backed items in games on numerous platforms like Android, iOS, macOS, and PC.

 

    7. Marketplace: This is Enjin’s native marketplace for different ENJ-backed assets where you can buy and list items with the safety of smart contracts.

 

The Underlying Technology and Features of Enjin

 

Being an ERC-20 type token, the Enjin Coin is deployed on the Ethereum blockchain. ENJ is circulated in the entire Enjin Network to form various types of smart contracts, such as Mint smart contract, Smart Wallet Contract, Subscription Contract, Payment Gateway Contract, and TopList contracts.

 

Enjin offers an all-in-one website platform for creating engaged communities around various specific gaming platforms. It offers a website builder for developers and users to customize their products with the drag-and-drop facility. It also offers a built-in donation facility to fund servers for different groups of players. The Content Management System (CMS) of Enjin network can be used to tailor various specifics for every product.

 

Enjin utilizes the JSON-RPC protocol for its public API features. Enjin API is used for accessing various types of smart contracts, checking account balances, as well as reaching out to the community.

 

Let’s discuss a couple of important features and the technology Enjin Ecosystem offers in detail.

 

  • Virtual Good Creation
  •  

    Enjin offers a powerful SDK (Software Development Kit) tool that makes it is extremely capable of allowing game developers to easily create currencies backed by Enjin Coin. These coins can be totally customized and are unique to their respective platforms or games. Therefore, each currency though specific to their platforms gains in speed, security, cost, reliability, and accessibility – the whole power of blockchain.
    Records of all of these tailored coins are kept in a single Registry Smart contract. Therefore, any smart wallets recognizing Enjin Coin can accept these customized coins as well. These coins can be exchanged anytime for the backed ENJ token. This creates an interlinked ecosystem of Enjin-based gaming platforms and communities thus allowing transferring of coins, privilege tokens, as well as virtual assets and unique game items across various platforms.

     

  • Payment Gateway
  •  

    Enjin SDK allows developers to build their own decentralized payment gateway. The feature-rich Enjin SDK offers a lot of customization options such as the option to build custom shopping carts, web invoices, SMS and email, refunds, etc. as well as a widget to accept Enjin Coin and Customized Coin payments on that specific website.

     

    These payment gateways built with Enjin SDK has a very helpful feature. It allows paying multiple people in a single transaction. Since the smart contract agreement with different payees is already placed, the total fund is divided between the relevant users. This feature really comes handy for use cases such as an automatic token distribution from pool fund to multiple payees as per agreed upon contract. The payment gateway charges a very nominal fee in Ethereum for each transaction.

     

    Smart wallet functionality can also be accessed from here to set up automatic payments for games and certain sites labeled as a trusted site to increase the speed and efficiency of transactions.

     

  • Smart Wallet
  •  

    What blood is to heart, Enjin Coin is to Enjin wallet. Enjin smart wallet keeps records of all your ENJ-backed virtual goods from different platforms and is synced to your particular Ethereum address. Through the smart wallet, a user can easily trade these virtual items and coins with other users outside the gaming environment.

     

    During a trade, a transaction request is sent which the receiver (wallet user) may choose to approve or reject. The Enjin wallet also enables a user to set transaction limits and employ certain rules to protect against any undesired auto-transactions. The wallet allows you to create, import, use, and track an infinite number of blockchain wallets as well.

     

    The Enjin Wallet Swap feature enables you to convert about 200 tokens from thousands of available trading pairs thanks to native integration with token conversion platforms – Kyber Network, CoinSwitch, Changelly, and Bancor.

     

    The Enjin smart wallet is available for Android OS and iOS. It offers two NSA-grade cryptographic layers to shield the Keystore and your various confidential data. In partnership with Samsung, Enjin also offers Samsung’s Blockchain Keystore Security – detail a little later. It also blocks any attempt at video recording or screenshot of the wallet at an operating system level.

     

    The wallet has an inbuilt keyboard to protect users from data sniffers and keyloggers getting your password and private keys from your mobile keyboards. Enjin wallet focuses on account recovery as well in case you lose your phone or forget your password. A 12-word passphrase is provided for this purpose when you set up your wallet which you are supposed to keep safe in paper wallet. Also, custom ARM instructions ensure that sensitive data is deleted from your phone’s memory instantly.

     

    The wallet also offers QR code facility to claim bonuses, trade assets, and link to blockchain games.

     

  • Enjin Beam
  •  

    As mentioned, Enjin Beam has been introduced to distribute virtual assets seamlessly through a visually accessible method. The Enjin team updated this feature with a Reveal Code version.
    This feature allows users (retailers, game studios, and other businesses) to send hidden messages embedded in next-generation ERC-1155 assets via Enjin Beam. These hidden messages can be used to deliver various benefits such as access keys, event tickets, discounts, coupons, gift cards, etc.

     

    Enjin Coin History and Supply

     

    The total supply of ENJ token is fixed at 1 billion coins. out of which 791,787,739 tokens (around 80%) is in circulation and 11,319,222 tokens (1.13%) are locked up in 49,775,136 assets.

     

    As of Jan 05, 2020, the market cap evaluation of ENJ token is $60,687,200.06 USD. The highest value hit by ENJ token is on Jan 07, 2018, at $0.493384 USD and the all-time low of $0.015620 USD was seen on Nov 02, 2017. The current value of the Enjin Coin is $0.075912 USD as per the latest data. Since its launch in 2017 through ICO, the Return of Investment (ROI) value of Enjin Coin currently stands at 210.45%.

     

    How to Buy Enjin Coin?

     

    Usually, Enjin Coin cannot be directly purchased and is traded with BTC, ETH, BNB, USDT coins.

     

    There are quite a handful of exchanges that offer ENJ token. Prime among them is the good old Binance, holding around 33% of ENJ tokens which is tradable with BTC, ETH, USDT, and BNB tokens. You can also purchase ENJ coins majorly from exchanges like LATOKEN (holding about 21.5% token), Bilaxy (14%), Upbit (10.21%), Bithumb (5.79%), BitAsset (2.85%), CoinEx (2%) as well as exchanges such as HitBTC, KuCoin, Bittrex, etc. for small volume.

     

    CoinSwitch platform offers direct purchase of Enjin Coin through credit cards (Master/Visa) in all major fiat currencies, e.g. USD (US Dollar), Euro (Euro), AUD (Australian Dollar), JPY (Japanese Yen), RUB (Russian Ruble) as well as other cryptocurrencies. You can also compare the ENJ token rates across all exchanges offering here before purchasing. Last year, CoinSwitch has partnered with Enjin to build a crypto payment gateway. Bancor, KyberSwap, and Changelly are other trading partners of Enjin.

     

    How to Store Enjin Coin?

     

    There are plenty of choices for storing ENJ token. Ideally, we would suggest the native Enjin Wallet. Available for Android and iOS mobile devices, it allows you to easily and securely store and move ENJ tokens. You can also store other ERC20, ERC721, and ERC1155 based coins as well as other altcoins like BTC, ETH, LTC, etc.

     

    Since ENJ is primarily based on ERC-20 standard, so any Desktop and Mobile wallet that supports ERC-20 is game. For hardware wallets, the Ledger series of wallets are pretty solid choices as always.

     

    Enjin Partnership

     

    Enjin has strategically partnered with various firms to grow the usage of blockchain gaming and therefore increase the value of ENJ token. The firm has partnered with cross-platform game engine Unity that host Enjin SDK to integrate blockchain asset into the game directly. This is a strong move since, as per the Newzoo Report in 2018 Q4, the current evaluation of the mobile gaming industry stands at $63.2 billion USD globally and keeps growing every year.

     

    Microsoft has chosen Enjin as a technology provider with the deployment of Azure Heroes in Q4 of 2019. Azure will directly use ERC-1155 non-fungible tokens as a reward. This Blockchain-based reward will be given to contributors who help produce material or promote the Microsoft Azure platform, with participants given tokenized badgers, a type of digital collectibles, for demonstrable contributions.

     

    Last year, Enjin has entered into a partnership with smartphone manufacturer Samsung Electronics as a technology provider. As per the deal, the Enjin Wallet is offered future Samsung mobiles starting with the Galaxy S10 series. The wallet directly interacts with Samsung’s Blockchain Keystore, a trusted zone on new Samsung devices that are specifically designed to keep cryptographic private keys safe. In turn, Samsung support Enjin’s ERC-1155 token standard to help increase the adoption of Blockchain-based non-fungible tokens.

     

    The firm’s other partnerships include PC Gamer and NRG eSports. Enjin Wallet has become the first wallet to offer full Binance Chain and all BEP-2 (ChangeNow, Mithril) based tokens.

     

    The Future of Enjin Coin

     
    Consider the following facts –
     

  • There were already more than 60 blockchain-based games in the Enjin platform sharing the multiverse last year.
  • The value of ENJ token was greatly revitalized when partnership news with Samsung came up last year.
  • Other partnerships also show that Enjin is fully prepared to use strategic partnerships to create funding and exposure.
  • Enjin is the largest such blockchain gaming company offering not a product, but a unified ecosystem targeting the multi-billion dollar gaming industry.
  • Where there are about 7.5-time fraud transactions for every transaction, Enjin Coin along with its ecosystem offers blockchain-level security.
  • The largest competitors Enjin Coin has are WAX and GameCredits, both of which are far behind in terms of offering and value than Enjin.
  • The advisors to the Enjin project include Anthony Diiorio, co-founder of Ethereum and Pat LaBine, previous producer and technical director at Bioware.
  • Enjin has been able to stick closely to its roadmap timeline goal. As of the Q2 report of 2019, Enjin’s primary development focus is launching the Enjin Platform to Mainnet.
  •  

    The above facts clearly indicate that Enjin Coin has an auspicious future. However, expert opinions are polarized in this regard. Investment researchers and market players like Walletinvestor.com expects the Enjin Coin to underperform, probably remembering the volatile price chart of it during 2018. Some experts expect a robust performance from Enjin Coin – such as Digitalcoinprice.com predicting ENJ coin value to reach a price of $0.15 by December 2020.

     

    The gaming industry is evolving, with more and more users prefer online games. In this respect, mobile gaming has already accounted for 47% of the global games market as per NewZoo Research. According to a recent report from Activision Blizzard Media and Newzoo, it was expected that around 2.4 billion people would get into mobile gaming in 2019.

     

    Conclusion

    Enjin Coin is proving what the gaming industry lacked so far – true ownership to virtual goods holders through the power of blockchain in a growing industry plagued by fraud – the stage for Enjin Coin is already set.

     

    It has already made its presence felt in the industry. But the firm and the Enjin Coin has much to prove. With no major player to challenge, it has all the potential to lead and be the Ethereum of the Gaming industry.

    Rajarshi Mitra
    Blockchain Researcher