The Enjin Coin is an ERC-20 cryptocurrency that was created by Enjin to support their vision of putting gaming on the blockchain.

Enjin already describes itself as the “largest gaming community platform online” and supports over 300,000 gaming communities, with 19 million registered gamers. Since 2009 Enjin has enabled gamers to create websites for clans and guilds, create forums, add wikis, chat groups, and much more. And now they’re bringing it to the blockchain and adding innovative new features.

The goal of the Enjin team is to make the Enjin Coin the most usable cryptocurrency for gaming and gamers. Besides the coin itself, Enjin has also created dozens of software development kits (SDKs) that will help developers integrate new features for their communities and games.

One huge benefit being promoted by Enjin is that by bringing gaming onto the blockchain they will be able to help gamers avoid the extremely high levels of fraud prevalent in the transfer of virtual goods.

What is the Enjin Coin?

The Enjin Coin is an ERC-20 token built on the Ethereum network. That means that the project not only brings the benefit of the blockchain to gaming, but also the benefits of smart contracts.

In addition, it has become one of the first projects to test the capabilities of Ethereum’s Raiden Network, and once that goes live it should be able to handle millions of transactions.

The Enjin team has plans for dozens of features through its public SDKs and APIs, but in the spirit of brevity I’m only going to be touching on the major features in this article. For an in-depth look at all of the planned features you can have a look at the Enjin Coin website.

Enjin Virtual Goods

Enjin Virtual Goods
Enjin Virtual Goods. Source: Whitepaper

The biggest value Enjin is hoping to bring to the gaming community with its token is in the area of virtual goods. Using the included tools, developers can create coins specific to their own community, and these coins will be backed by the Enjin Coin. This adds the benefits of the blockchain, while retaining the branding and feel of the respective platforms.

The fact that items will be recorded on a single registry smart contract means any items added to the blockchain will be recognized by every Enjin wallet. This will interconnect the entire ecosystem, allowing for assets to be transferred anywhere on the platform.

This could become especially important as new games are developed specifically for the blockchain, giving developers the ability to create single assets that work in multiple games.

Enjin Payment Gateway

To make transactions even easier, the Enjin Coin SDK comes with a decentralized payment gateway. The payment gateways allows developers to add shopping carts, invoices, process refunds and any other feature you can imagine in a payment gateway. There’s also been a widget developed already that you can place on your website to accept Enjin Coin, or other customized coin payments.

There is a small fee in Ethereum charged on each transaction, but that network fee is the only fee you’ll find, unlike traditional payment gateways.

If you’re using the Enjin Smart Wallet you can create automatic payments to games and websites you’ve listed as Trusted Platforms. This is ideal for subscription services, and gives gamers a faster and more trustworthy payment system.

Enjin Smart Wallet

Enjin Smart Wallet
Enjin Smart Wallet. Image via enjincoin.io

Everything I’ve discussed so far is brought together in the Enjin Smart Wallet. The Smart Wallet supports Bitcoin, Ethereum, Litecoin, Enjin Coin, and all the ERC-20 coins. More importantly, it also supports all your virtual items from every Trusted Platform you add, and synchs effortlessly to your Ethereum address.

Within the wallet you’ll be able to trade coins and virtual game items with any other Smart Wallet user. There is support for Transaction Requests that can be sent to other wallet owners, which they will then either confirm or deny. In addition, you can set up rules or thresholds to prevent any unauthorized or undesired transactions from occurring.

The Enjin Smart Wallet was created with security firmly in mind, and one of the best security features is the Secure Keyboard that was developed for the Enjin Smart Wallet.

This keyboard is natively part of the app and it prevents any keyloggers or snoopers from seeing or capturing anything you type – including passwords and private keys. And for those who are especially security conscious, the wallet can even be setup to randomize your keys.

Adding further to the security of the wallet is two separate layers of cryptography. The hardware level includes Advanced Encryption Standard and the software uses custom software encryption to encrypt any data processed by the wallet. The wallet will also block any recording or screenshots of the wallet itself right at the operating system level.

If you aren’t interested in all these features and security you can also store your Enjin Coins in any ERC-20 compatible wallet, such as MyEtherWallet, MetaMask, or one of the secure hardware wallets.

Other Enjin Coin Features

Planned Enjin Coin features also include ecommerce virtual goods stores, a global marketplace, subscription services, trading escrows, and “top lists” for items, servers, teams, and/or games. And that’s just through the end of 2018.

Enjin Coin Team & Progress

Enjin, the company that developed the Enjin Coin, has long been the largest online gaming community creation platform. The company has been providing gamers with website builders, chat functions, forums, and a variety of guild and clan building tools since 2009. Even before the creation of the Enjin Coin the company had over 60 million monthly pageviews, 19 million registered users, and 300,000 gaming websites.

That should massively bootstrap the adoption of the Enjin Coin, since the Enjin team will be rolling it out across the entire Enjin ecosystem of 300,000 websites and 19 million users.

Enjin Coin Core Team
Enjin Coin Founding Team

Advisors to the project consist of Anthony Diiorio (Ethereum co-founder) and Pat LaBine (previous producer and technical director at Bioware). Enjin has also formed partnerships with Unity, PC Gamer, and NRG eSports.

Late 2017 saw the team run a successful ICO, raising roughly $35 million, which is meant to be spent entirely on developing, marketing and growth of the project.

While the project is young, Enjin has a strong team and resources, which meant the last quarter of 2017 saw the development of a mobile Smart Wallet, the Platform API, Java SDK, and a Minecraft plugin. 2018 has an aggressive roadmap, with plans for additional game plugins, the Efinity release, numerous SDKs and other improvements to the ecosystem.

There are several gaming related projects begun, such as Enjin Coins competitors WAX and GameCredits, but none of the three have become dominant yet. There are definite differences between the three however, and Enjin CMO Elija Rolovic has categorized these differences by calling Enjin Coin the “Ethereum of Gaming”, while going on to call the competition nothing more than “tokenizing their centralized games/marketplaces.”

The Enjin Roadmap

You can find the Enjin Roadmap on the Enjin Coin site here. There are many exciting developments on the way, not the least of which is the partnership with Efinity. Efinity will add a sidechain to the Enjin blockchain that will act in a similar fashion to the Lightening Network for Bitcoin.

It gets around the network congestion that has been increasing on the Ethereum network, as well as the rising transaction fees. It will theoretically allow the Enjin network to scale to millions of users with fast transaction speeds and nearly zero transaction costs. And it will keep transactions on the Ethereum blockchain, so that they remain trustless.

The logical endpoint of this will be games that run on the blockchain, which is projected to create innovation within the video gaming industry. Another exciting feature is the upcoming implementation of the Enjin Blockchain Explorer, which will eventually allow browsing of all ENJ assets in the future.

Enjin Coin (ENJ) Supply

The total supply of Enjin Coins (ENJ) is 1 billion, with just a bit over 750 million of them in circulation. 80% of the ENJ were distributed during the crowdsale, while the remaining 20% were split between the Enjin team and advisors.

The circulating supply of ENJ can be expected to continue falling, because anytime a custom asset is created the corresponding amount of ENJ are removed from circulation. This is expected to increase the value of ENJ tokens over time.

Trading ENJ

The ENJ hasn’t seen anything really unusual since its ICO in November 2017. It followed the broader market higher in the December 2017 rally, and then dropped with the market in January. It has remained at these lower levels since then, and is trading at $0.103285 as of the end of May 2018.

Enjin Coin Price Performance
ENJ Performance since Inception. Source: coinmarketcap.com

Once we see a more bullish cryptocurrency market it is expected that ENJ will be lifted with the rest of the market. It is also expected to see greater price increases in response to product launches and partnership announcements. And it is also expected to rise as it gains greater adoption, due to the removal of ENJ from circulation as additional assets are added to the blockchain.

You cannot purchase ENJ with fiat currency. Instead you’ll need to use BTC or ETH. The largest exchange for ENJ is Binance, but there is also decent trading volume on OKEx and Qryptos.

Conclusion

The Enjin Coin is looking to provide a benefit to the $17 billion virtual goods market. By placing game assets on the blockchain they hope to prevent fraud in the industry, which some measures have suggested affect roughly 80% of all transactions.

That would be a huge improvement for the gaming industry and gamers, and with the huge customer base that Enjin already has, the coin should be able to reach large scale adoption fairly quickly.

That said, it remains a new project, and unproven as well. So far the team has done well in meeting their roadmap goals, and they will need to continue doing so if they want to prove the viability of the Enjin Coin.

Their partnership with Unity should help drive them towards one of their goals, which is the creation of actual games on the blockchain, and this will help drive further adoption of the Enjin Coin. Nothing is proven yet, but the project does look to have a bright future.

Featured Image via Fotolia & Enjin

Posted by Steve Walters

Steve has been writing for the financial markets for the past 7 years and during that time has developed a growing passion for cryptocurrencies.