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 tok...