Blockchain Luxemburg S.A’s venture capital arm, Blockchain Ventures, recently announced that it would invest in Enjin. According to venture capital firm’s managing partner, Enjin is a good example of a blockchain firm with solutions that address issues in today’s centralized computing paradigm.
How Enjin Works
Enjin provides gaming infrastructure to gaming firms, which helps them to integrate tradable virtual assets in their ecosystems. However, Enjin has not revealed how much the investment is worth. With the aid of blockchain technology, gaming firms can offer their clients actual ownership of their virtual assets. This way, users can store, sell, and trade them outside a gaming company’s ecosystem. The use of blockchain technology also serves as a useful tool for user retention by helping them monetize their gaming assets.
In 2017, Enjin managed to raise $18.9 million by selling its Ethereum-based native tokens via an ICO. Since then, the company has created over 40 games on Ethereum and now has a user base of over 20 million people.
Every asset on the Enjin platform as based on the ERC-1155 standard. The assets are backed by Enjin’s native token called the ENJ. These tokens are tradable and provide proof of value for the assets. Some of the items that users can trade amongst themselves include armor, clothing, weapons, and other gaming items.
According to Enjin, their model could help to empower players and avoid issues such as the recent Star Wars Battlefront II issue. With Enjin, users are able to move assets across various supported games, which is not possible with existing systems. The company has a stated goal of democratizing and improving the gaming ecosystem for developers and gamers. In the current system, gaming companies and game distributors hold all the power.
Enjin recently launched a marketplace where users can trade their items without any limitations. Not only can gamers trade items within the same game but they can also sell items between games. While gaming items may not be useful outside the games for which they were created, gamers can hold the items as collectibles. This model opens up the possibility of different games that are interconnected via the Enjin blockchain being able to participate in a shared economy.
Thus far, over 59 million ERC1155-standard assets have been minted using the Enjin platform. This has led to about 1% of all the ENJ tokens being locked in tradable items. The ENJ tokens act as a certificate of authentication for the gaming items.
About Blockchain Ventures
Blockchain Ventures usually make long-term investments in firms that have projects in the blockchain space. Its focus is on companies that offer products and services with practical applications, which are different from what is in the industry. Besides Enjin, the venture capital firm has invested in Origin Protocol Inc, which is a shared economy platform. Additionally, it has invested in Silver.tv, an esports entertainment service, DappRadar UAD, a distribute app tracker, IoT network provider Nodle.io, and Securitize Inc., which focuses on managing digital securities.
Image Source: Enjin Twitter
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