Analysis of DeFi Product: Enjin

Analysis of DeFi Product: Enjin
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Analysis of DeFi Product: Enjin
Section One
DeFi is the acronym for decentralized finance, an emerging sector where participants can make financial transactions with one another without involving an intermediary or middleman such as a bank or broker (Ozili, 2022). The sector is gaining popularity quickly as an alternative to traditional financial services such as banks. The technology lets an individual do most things that centralized financial institutions like banks offer, with new transactions and products available every day. DeFi is based on blockchain technology and allows customers to use crypto-currency to conduct most activities that traditional centralized systems offer with the governmental fiat current. These activities include borrowing, lending, trading assets, earning interest, and buying insurance, among many other things. Its services tend to be cheaper, faster, and simple, with other advantages and services popping up each day (Ozili, 2022). Using decentralized financial platforms allows individuals to make transactions directly with one another, referred to as peer-to-peer service. It cuts out intermediaries to make financial transactions more efficient, cheaper, and quicker. People access their digital assets via a secure digital wallet into smart contracts to make transactions. The technology is open to anyone with internet access and can be operated anywhere in the world.
Blockchain-based non-fungible tokens (NFTs) have resulted in the rise of Web3, and the number of projects based on NFTs is increasing every day, providing technological means of assembling crucial data on blockchains visually appealingly‌ (Weston, 2022). Enjin is a platform that utilizes this technology to give its clients access to decentralized services, including selling and purchasing digital assets. This gaming platform was co-founded in 2009 by Witek Radomski and Maxim Blagov. The platform helps participants craft an ecosystem comprising products that developers, businesses, and individuals can use to trade, monetize, develop, and market NFTs. Users can create NFTs, gaming apps, and virtual goods on the Ethereum blockchain using software development kits (SDK) Weston, 2022). Conventional gaming platforms do not allow gamers to take full control of their activities and manage their games effectively. This is the problem Enjin aims to solve. For instance, through the platform’s Enjin Coin token, abbreviated as ENJ, gamers can obtain digital items in-game, trade them or even sell them to obtain more ENJ. Players in Enjin can control their tokens and thus increase their value, unlike in most conventional games, where the gaming platform provides users with fixed tokens ‌ (Weston, 2022). Through this platform, entrepreneurs can create music, gaming, art, and sports-based NFT projects with the functionality to create custom tokens without any coding requirements. Thus, it focuses on enterprise and gaming services and allows users to develop ENJ-backed virtual assets and use them creatively, such as purchasing digital vouchers and items used across various video games‌ (Kriptomat, 2022b). Some Enjin adopters are tokenizing commercial real estate using this platform. The platform’s community management tools have helped millions of Minecraft users to stay connected and form a robust network of like-minded players. Enjin, as a cryptocurrency project, was developed as a comprehensive ecosystem that offers individuals a powerful collection of products tailored to allow any person. This is regardless of their skills and knowledge of cryptocurrency and blockchain, to jump into the blockchain world without much to worry about‌ (Kriptomat, 2022b).
Section Two
Enjin, like any other platform operating in the metaverse, has a digital token called Enjin Coin, an ERC20-based token built on the Ethereum network, meaning that the platform offers both a means of transaction and smart contracts (Weston, 2022). Enjin Coin is majorly used in different operations, such as selling, purchasing, or trading NFTs using different products offered by Enjin, including gaming assets. In addition to this core function, Enjin Coin can be used like all other crypto-currencies, meaning that it can be traded across different crypto exchanges anywhere in the world. It has found great use in the gaming sector because it allows players to store various items like accessories and characters in the form of bespoken tokens, which can be liquidated later for ENJ if the need arises (Weston, 2022). Via Enjin Wallet, gamers can access different partner gaming platforms, keep a record of different tokens and collectibles and sell digital assets for Enjin Coin at their convenience. Enjin platform and marketplace are emerging as convenient options to obtain and trade NFTs through software development kits, allowing the creation and integration of digital assets into the gaming world and other apps with ease. Each of these digital assets is ascribed value in Enjin Coin, and they enable gamers to trade coins, NTFS, and other products outside the gaming environment with maximum security (Weston, 2022). Enjin coin is unique compared to other crypto-currencies because it has been established as a digital token with a huge number of Enjin uses. It is a feasible option for individuals looking to invest in the cryptocurrency sector for the long term.
The platform’s protocol consists of software development kits (SDK), API, an Escrow-based marketplace, and smart wallets. Developers can discover multiple SDKs for various platforms, such as Unity, Java, and Android C#, on Enjin (Weston, 2022). They can also explore a suite of add-ons, such as the Unity plugin and Minecraft plugin. Resultantly, the platform offers the desired flexibility for integrating existing projects and completing new ones with the help of SDKs. The Trusted Cloud is a bridge using Enjin Network SDK to receive requests and calls made by all gamers (clients and servers) and convert them into normal responses such as token-holding information, user identification, and access to blockchain data (Weston, 2022). Smart Wallet is another aspect of Enjin’s infrastructure, the basic blockchain asset. It supports interaction between the blockchain and the game. This is possible because each Wallet links an Ethereum address directly to the user identity on the platform. This way, all items stored in a particular game via Enjin Network are rapidly converted into ERC-1155 tokens, both fungible and non-fungible. At this point, the player can confirm in their Wallet that their tokens are there under their control. Additionally, every interaction with blockchains requires the payment of a small commission that requires one to spend Enjin Coin. Thus, each object, interaction, or character has a particular value, generating a real economy within every game (Weston, 2022). Another crucial feature in Enjin’s infrastructure is the Application Programming Interface (API), which uses the JSON_RPC protocol. It helps the user check their balances and facilitates their access to smart contracts. Therefore, it allows websites to display data without Web3 extensions. Lastly, the Escrow-based marketplace is another feat...