What Is Enjin Coin (ENJ)?

Enjin (ENJ) is an online gaming community creation platform built on Ethereum blockchain. Enjin aims to make the gaming experience easy for developers and players by providing crypto-backed value and tools like software development kits (SDKs), game plugins, wallets, virtual item management apps, along with a payment gateway platform. Using the Enjin platform, gamers and content creators can easily manage, distribute, and trade their virtual goods (NFTs).  

Existing online gaming platforms present an array of problems. Assets stored online can be open to manipulation, scammers, and chargebacks. Approximately 7.5 virtual items are lost to fraud every time a genuine online purchase is made. Such scams can also hamper the game's reputation. Additionally, there can be other issues related to online gaming platforms, like slow transactions due to third-party dependency, high transactional fees, and centralization leading to assets getting locked in a single game. 

Enjin enables gaming communities to manage in-game items and virtual goods across multiple platforms. Using the Enjin platform, online gamers can trade their assets from game to game and across communities. This feature allows gamers to grow their digital wallet with real value rather than centralized rewards locked on one platform. To trade assets across communities, the users first have to convert their online goods into NFTs via minting. Minting essentially means converting a digital good (like gaming collectibles and artwork) into a unique token. Users can mint their NFTs on Enjin by binding them into smart contracts. Smart contracts are like regular contracts; however, instead of being drafted on paper, smart contracts run through protocols on blockchain. NFTs created with Enjin use a standard called ERC-1155, which was developed by Enjin's team and is distinct from the more common ERC-721 standard. ERC-1155 allows users to create assets like real estate, digital art, gaming items, etc. Unlike traditional smart contract standards, a user can define both non-NFTs and NFTs under a single smart contract using the ERC-1155 standard.  

According to Enjin's whitepaper, the platform's smart wallets enable easy automatic payments in a decentralized manner. Decentralized payment gateways make the transactions transparent and reduce the chances of fraud, chargebacks, and cancellations. Enjin charges a minimal fee for blockchain transactions with zero commission fee.

ENJ is the native token of the Enjin platform. When a new NFT is minted on the network, a chosen amount of ENJ is minted into the token through a smart contract. The locked funds give the newly built goods real-world value, as each item can be at any point melted back into the underlying ENJ backing. Owners of various virtual goods on Enjin can convert their NFTs into ENJ at their original exchange rate (when the NFTs were minted). Since Enjin is built on the Ethereum platform, ENJ is an ERC-20 token—which means ENJ can be traded with other tokens on Ethereum blockchain and with real-world value. 

History of Enjin Coin (ENJ)

Maxim Blagov and Witek Radomski originally founded Enjin as Enjin Network, a community gaming platform, in 2009. The company ventured into the blockchain industry in 2017 with an initial coin offering (ICO) of $18.9 million. In 2018, Enjin Network launched its own blockchain wallet called Enjin Wallet. The Enjin platform was also launched in 2018 on Ethereum mainnet. An iOS version of Enjin Wallet was launched a few months later. ENJ was deployed on ERC-1155 standard in June 2018. 

How Are New ENJ Coins Created?

Enjin tokens cannot be staked since they run on a PoW (proof-of-work) consensus algorithm. This means that the ENJ network relies on miners, and the tokens can be created through mining. The mining is done in the same way as it is done for Bitcoin (BTC) or other cryptocurrencies using an ASIC unit or a GPU. Application-specific integrated circuits (ASICs) are the machines designed explicitly to mine cryptocurrencies. The miners need to validate transactions on the ENJ network by solving cryptographic equations.

Consequently, the miners proceed toward the next transaction. ENJ coins can also be mined through personal computers by joining miner pools. However, the effective way to mine ENJ is by using an ASIC mining setup.

How Many ENJ Coins Are There?

ENJ has a circulating supply of 834,340,660 ENJ coins and a maximum supply of 1 billion ENJ coins.

How to Buy Enjin (ENJ) Coins

Users can buy ENJ coins by creating an account on Coinbase, an easy-to-use and beginner-friendly platform for trading cryptocurrencies.