Enjin

Enjin co-founder: Use NFTs to track users in the metaverse

Instead of using moderators to shadowban users à la Twitter, the metaverse could offer a mechanism operable across blockchains incentivizing us to police fellow users ourselves.

For all the hype around the metaverse, it is easy to forget it is still in its infancy. While the term has only recently entered the broad public consciousness, its impact on how we interact with technology is already expected to be deeply consequential. McKinsey & Company estimates that annual global spending within the metaverse could reach $5 trillion by 2030 across domains as broad as gaming, social, fitness, commerce and remote learning. 

The question of how to define and build technology with such broad capabilities is in flux. While a number of games — such as Roblox, Fortnite and Minecraft — have been hailed as early examples of successful metaverse platforms, a more holistic approach would see unrestricted interaction for players across these games. Interoperability between metaverse platforms is one key component that should be considered.

A new way of socializing

While only recently entering the public lexicon, the metaverse is not a new concept. The term was originally used to describe a fictional break from reality in Neil Stevenson’s Snow Crash. The popularity of digital entertainment surged massively during the pandemic. From games like Among Us to services like Netflix Party and Zoom, the opportunity to socialize virtually was highly appealing to many during a time of deep isolation.

Related: AI will help realize the true vision the metaverse hopes to achieve

These changes have fundamentally reshaped our ideas of how we socialize and work together, with enduring habits formed in connecting and collaborating virtually — an important factor accelerating engagement with the metaverse. Virtual experiences such as Travis Scott’s Fortnite concert have made positive steps forward in developing in-game socially immersive experiences. However, a multi-platform hypersocial virtual experience has yet to reach the market.

Moderation versus censorship

Freedom, community and collaboration are all defining characteristics of the metaverse. Achieving this requires infrastructure that can support the transfer of sensitive metadata across different blockchain protocols, metaverse platforms and gaming ecosystems in a blend of social media, crypto wallets and decentralized applications. So, before an interoperable metaverse introduces new business models and cross-platform capabilities, the issue of multichain identity and moderation must be addressed.

Decentralization brings with it the opportunity to experiment with community-led tactics, incentivizing certain behaviors and allowing the collective to dictate its own preferences. PubDAO, a publishing collective launched in conjunction with Decrypt, provides a good example of how these structures can function. Significantly, it makes a clear distinction between moderation and censorship. Pubbers are like-minded individuals, writers in this case, who get screened, onboarded and integrated into the culture of the community.

Scaling this model up to billions of people creates problems, as individual screening is unfeasible. Legacy social media is plagued with this issue, deploying shadow banning and other censorship tools to deal with the issue. A common solution proposed by Web3 advocates involves algorithmic detection and incentivized moderation to counteract abuse, and yet this fails to account for the nature of a multichain metaverse.

Even when done transparently and equitably, far too many abuses would slip through the net. Using the same machinations of the infamous Tornado Cash mixer, the laundering tool of choice for 52% of nonfungible token (NFT) scam proceeds prior to being sanctioned, one would be able to hide the origin of abusive messages in the name of free speech. Even if the perpetrator got doxed on one chain, they could hop to the next. This is not the type of metaverse anyone wants to inhabit.

NFTs make users trackable across chains

The potential solution lies in moving moderation tools upstream. Twitter has trialed such a process with success. By providing warning prompts prior to publishing tweets, 9% of users were encouraged to cancel their posts. Overall, the study concluded that there was a 6% reduction in offensive tweets as a result of this mechanism.

Number of accounts reported to Twitter by category from July-December 2021. Source: Twitter

Implementing a metadata standard and infusing it with decentralized identifiers (DIDs) could provide an avenue for ethical moderation, one that does not impose on privacy but ensures accountability. Such a multichain technical standard would ensure that tokens minted on any chain can be traced back to their origin within the metaverse. NFTs could be infused with verifiable credentials, enabling platforms to afford privacy to their users and define the terms in which these rights would be forfeited.

Related: Get ready for the feds to start indicting NFT traders

More importantly, at a time where cybersecurity is an increasingly greater concern, a metadata standard would afford individual users more protection. Data breaches in gaming are notoriously common, with more than half of frequent gamers targeted by hacks, according to a 2020 report from Akamai. The wealth of victims and the prevalence of in-game microtransactions make a lucrative target for cybercriminals. On top of that, users tend to use the same password across accounts, making credential stuffing a serious issue with the potential to percolate across industries.

While certainly not a panacea, an interoperable standard would go a long way to consolidating individual security needs. Web3 is set up to accommodate an identity system that removes the need for sensitive data to be stored on centralized servers, making it harder for hackers to access. In the event that personal assets are compromised, a metadata standard imbued with DIDs would enable traceability across the multichain metaverse.

Data standards will dictate the evolution of the web, so it is important that we get them right. Interoperability is easier to set up from the outset than retrofitting it in. By learning the lessons offered by the development of the internet, we can together build a revolutionary metadata standard that fosters a positive, shared techno-social experience on Web3.

Witek Radomski is the chief technology officer and a co-founder of Enjin, a blockchain tech company building products for next-generation NFTs. Witek is the author of the ERC-1155 token standard, the only token standard that enables the configuration of both fungible tokens and NFTs in a single smart contract.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

What is Enjin (ENJ) and how does it work?

As an ERC-20 compatible token, Enjin, a cryptocurrency introduced by the Enjin corporation, may be transmitted and received using an Ethereum wallet.

What is Enjin and what are its main features?

With blockchain-based nonfungible tokens (NFTs) powering the rise of Web3, a number of NFT-based projects are gaining significant importance, as they provide the technological means of assembling important data on blockchains in a visually appealing manner.

Related: Nonfungible tokens: How to get started using NFTs

Leading among them is Enjin, a world-class blockchain software co-founded by Maxim Blagov and Witek Radomski in 2009. Enjin helps build an entire Enjin ecosystem consisting of products that individuals, businesses and developers can use to develop, trade, monetize and market NFTs.

Allowing users to manage NFTs and crypto through the Enjin wallet, lets them share NFTs through simple QR codes and provides them access to a dedicated marketplace to trade and collect rare NFTs. All transactions in the Enjin ecosystem are powered by the native Enjin (ENJ) token and the platform offers the functionality of managing all digital assets through a simple mobile app.

It enables entrepreneurs to conceive gaming, art, music and sports-based NFT projects with the functionality to create custom coins without any coding requirements. The Enjin platform facilitates gas-free transactions for NFTs and ENJ through JumpNet, allowing for a seamless user experience that is made possible by its integration with all of its other products like Enjin Beam, Marketplace and Wallet.

Combined with Efinity, a Polkadot-based parachain, Enjin allows creators to mint tokens on specialized blockchains that are focused on core functionality and provide superlative chain stability. With companies such as Microsoft, Samsung and BMW having integrated Enjin’s products and services into their blockchain-based rewards platforms, Enjin is enabling millions of users across the globe to safely manage and store their digital assets.

Related: What is Polkadot (DOT): A beginner’s guide to the decentralized Web 3.0 blockchain

As the adoption of NFTs among individuals and companies across the world grows at an exponential pace, Enjin is well poised to emerge as one of the most important blockchain companies and this should translate into value creation for token holders of the native ENJ token.

What is an Enjin coin (ENJ) and how does ENJ work?

Launched by Enjin in 2017, ENJ is an ERC-20 compatible token that can be sent or received using an Ethereum wallet. ENJ is primarily used in various operations including purchasing, selling or trading NFTs using the various products provided by Enjin.

Apart from this core purpose and the fact that it can integrate with multiple gaming platforms, ENJ can be used just like any other cryptocurrency and can be traded across crypto exchanges. Considering the maximum number of use cases in the gaming industry, ENJ allows gamers to store unique game items such as characters or accessories in the form of bespoke tokens, which can then be liquidated for ENJ when needed.

Facilitated through the Enjin wallet, gamers can thus access various partner gaming platforms, keep track of the various tokens or collectibles and sell these digital assets for ENJ at their own convenience. For NFT fans, the Enjin platform and marketplace are emerging as one of the best options to discover and trade in NFTs, with Enjin’s software development kits (SDKs) enabling the creation and integration of digital assets into games and apps with ease.

Each of these in-game items is ascribed a value in ENJ and allows gamers to trade NFTs, coins and other items outside of the gaming environment with utmost security. What makes ENJ unique is that, unlike many popular cryptocurrencies, it has established itself as a token with a number of Enjin use cases and is a viable option for those looking to invest in cryptocurrencies for the long term.

How and where to buy Enjin coin?

Enjin’s vision has resulted in the development of a scalable and cross-chain token network that is making the process of minting, trading and converting NFTs into tangible token value that is very user-friendly. Additionally, it has made NFTs far more accessible and affordable, with faster and cheaper transactions leading to a significant increase in the overall NFT trading volume.

As NFTs witness increasing adoption among industry participants and users alike, tokens like ENJ will play a key role in unlocking immense value through unique digital and real-world assets like game tokens.

Available on leading crypto platforms and exchanges like Binance US, Crypto.com, Bithumb, Gemini, Swissborg, Kriptomat, Voyager and Blockchain.com, anyone can purchase ENJ using fiat currencies like the United States dollar or by trading other cryptocurrencies. If you are looking to buy and exchange the ENJ tokens, follow the steps below-

Is ENJ a good investment?

By enabling developers to mint items for gaming environments in the form of NFTs, the Enjin platform and the ENJ token will be one of the most preferred options for both users and businesses alike.

As more users get involved in this rapidly growing virtual economy, NFTs and cryptocurrencies will take center stage in fortifying the metaverse and are bound to emerge as the primary mediums for transacting in the digital space.

In that sense, Enjin and its native token ENJ have the potential to assume leadership status in this bustling space, something that token holders and potential investors could benefit from. As the number of platforms using Enjin’s suite of products increases, there will be an associated increase in demand for ENJ tokens, a factor favorable for further price appreciation.

What’s more, every time developers need to mint NFTs for their respective projects, they will lock the value in ENJ into a smart contract and the same is released when the item is sold. With a maximum supply limit of 1 billion tokens, ENJ’s value is poised to appreciate as demand for the token increases amid the backdrop of scarcity in supply.

Moreover, the United Nations Global Compact has accepted Enjin as a participant and the network is exploring ways on how to use NFTs to promote sustainability and equality. The token also has the distinction of being the first regulatory-approved gaming token in Japan, a feat ENJ achieved in January 2021 when it was legally authorized for trade by the Japanese Virtual Currency Exchange Association.

With the help of Enjin’s technology prowess and its solid footing as a secure platform for NFT-based applications, Enjin’s founders are committed to achieving net-zero emissions from electricity consumption and plans to enable carbon-neutral NFTs by 2030.

With the max supply of ENJ tokens capped at one billion, there could be market scarcity in the future which will help in controlling the token’s inflation rate. ENJ empowers its holders to access the Enjin ecosystem, one which is ever-expanding with new innovations and presents a unique opportunity for those who would like to invest in the future of virtual asset trading.

How will NFTs bridge traditional gaming with blockchain? Enjin’s CTO Witek Radomski explains

“There’s also a hugely untapped mountain of gold in gameplay possibilities with NFTs,” says Radomski.

When it comes to nonfungible tokens, or NFTs, the subject is often a hit or miss for traditional gamers. While some players welcome the idea of being able to trade in-game digital collectibles for real money, others lament that NFTs could potentially take away the inherent entertainment built within games. So can NFTs contribute any additional value to traditional games, other than turning them into play-to-earn “moneymakers?

To answer this, Cointelegraph Markets Pro spoke to Enjin’s chief technology officer and co-founder Witek Radomski via an ask-me-anything session. Enjin offers a comprehensive suite of products for creating, tokenizing, trading, distributing and integrating NFTs into the virtual world of GameFi. Notable projects using the service include Lost Relic. In addition, Microsoft Azure is working with Enjin to gamify their developer experience with Azure Heroes NFTs. When asked about the future of GameFi, Radomski explained that it’s difficult to build a good-looking game that’s also fun to play, and it’s even harder to grow a community around a game that sticks:

“We’ll experience a renaissance of blockchain gaming once things settle down with the bear market and more established developers focus on fun games, NFT utility and thinking beyond simply earning crypto coins through playing a game.”

Radomski is a big believer in using NFTs to gamify businesses. “Anywhere you can grant users access, special experiences, or exclusivity, NFTs are amazing. Nearly everyone online is creating some kind of digital content these days, and easy-to-use NFTs can help people give history, ownership, digital rights, and utility to everything being created.” Radomski elaborated that NFTs fit specifically into this niche as game developers are constantly creating insanely cool games and content and need a way to present their idea to gamers that’s immutable. In addition, he emphasized their role in validating one’s digital identity in the face of a looming impersonation crisis:

“In a couple of years, bots can perfectly deepfake any human or artwork. Artists, designers, and musicians may have identity crises where celebrities, politicians, game streamers, and eventually, ordinary people will be constantly scammed by them. If you value your digital identity, your consciousness, and your validity in the new society, blockchain is the only thing that can both prove you created something.”

To bridge the utility gap, Enjin is creating a complete end-to-end platform for building and using NFTs. Game developers would need to have their own blockchain development team pumping in months or years of effort to develop an NFT solution without such a platform. By building on Enjin, they can directly access the middleware and backend APIs, wallets, an internal marketplace, and a blockchain (Efinity) that is built for user experience with NFTs.

As for the ecosystem, Enjin’s namesake coin can also be infused into NFTs on Ethereum. Its decentralized, cross-chain network for NFTs, dubbed Efinity, is built on Polkadot (DOT). It is designed for optimization of games and the capacity to mint and distribute potentially millions of NFTs. The overall Enjin community of users and developers has grown significantly over the years, with 150,000 Enjin Coin wallet addresses alone.

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