The Polkadot ecosystem has been building one parachain after another during the last few months. Although many of them are focused mostly on DeFi, there’s one in particular that stands out by focusing entirely on NFTs and gaming. That’s Efinity. As a result, it will be beneficial to look at the platform’s overall capabilities.
Efinity is a Polkadot-based blockchain created by Enjin. This blockchain of the next generation attempts to resolve issues with current blockchains that limit the growth of NFTs and the blockchain sector. They want to incentivize user network members with the EFI token so that users may gain equally from blockchain technology as miners do.
On the blockchains where Non-Fungible Tokens (NFTs) currently reside, there are no incentives for real users (other than growing prices), since miners get the whole supply of newly-minted crypto coins. Prices grow, infrastructure corporations construct silos and paywalls, and it becomes an impossible market to make genuine progress in. As per Efinity, unless we can unite the community and adopt a fresh perspective, the current market conditions will only become worse.
Businesses and developers urgently require a modern, mainstream, and developer-friendly NFT platform that will transform the NFT industry by providing smoother and streamlined NFT experiences.
What is Efinity?
Efinity is a blockchain created by Enjiin, who pioneered the NFT sector in 2017 as the creators of ERC-1155 – the token standard for NFTs, developers of the first NFT creation platform. Efinity is is the world’s first and only cross-chain blockchain for NFTs.
Efinity is built as a parachain on the next-generation, fully decentralized network, Polkadot in collaboration with Parity Technologies and the Web3 Foundation. Polkadot is solving the biggest problems with blockchains right now such as interoperability, scalability, speed, security, privacy, development, and governance.
The network is environmentally clean, scalable, and designed for games, applications, corporations, and artists to send their unique NFT tokens to general audiences. It is powered by the deflationary EFI Token.
Efinity will facilitate the use of NFTs across practically all industries, therefore unlocking billions of dollars in illiquid and unique physical or digital assets.
Furthermore, Efinity aspires to be a crossroads for all fungible and non-fungible tokens. The Paratoken standard accepts tokens from any other chain, including the well-known ERC-721, ERC-1155, and ERC-20 standards.
The network that can help NFTs be properly priced and exchanged will quickly gain popularity, as it will generate network effects by attracting additional transaction volumes.
To get a bid, tokens do not need to be offered for sale or even exist on the network. Indeed, users may be rewarded for starting Bid Orders or Ask Orders and boosting network traffic by beginning transactions that other users may complete. By paying users to begin transactions, this method will automatically draw buyers and sellers to the network and produce network effects. This capability is intended to be expanded by third-party applications that permit transfers inside other platforms, such as games, or that serve as NFT markets.
Since the Efinity Network will go on to overcome the challenge of enabling NFT pricing and trading, it will automatically gain momentum as a result of generating network effects from attracting greater volume.
A Brief History of Efinity
Enjin Pte Ltd, a gaming firm founded in 2009 that has since evolved into the blockchain sector with the debut of its Enjin network in 2017, is the brains behind Efinity.
Between February and March 2021, the Efinity protocol underwent three private sales. These rounds gathered roughly $19 million from a wide array of crypto funds and industry veterans. A public offering of the EFI token occurred on June 24, 2021, where over 40,000 investors obtained $20 million in under three hours.
The EFI token was generated on August 4, 2021, and it was promptly traded on a variety of Centralized Exchanges.
In November 2021, Efinity announced the start of the Efinity Metaverse Fund, which will invest $100 million in metaverse, NFT and gaming-related businesses to help develop the decentralized metaverse sector.
Blockchains such as Ethereum have grown too costly. The typical user may spend more than $7 to shift a single token.
The goal of Efinity is to serve as an NFT highway rather than a general-purpose computing blockchain. Rather than serving as a decentralized database, Efinity aims to serve as a network for NFT transactions. The network prioritizes token production, transfers, and purchases.
Transaction costs on Efinity are supposed to be transparent, allowing consumers to enjoy their favorite items without thinking about the networks’ fees and other mechanisms.
Miners in Ethereum and Bitcoin are rewarded with currency for safeguarding the chain, but the NFT sector lacks comparable incentives to drive growth and development.
Efinity incentivizes network participants by paying them with the EFI token such as:
- The network’s controller nodes, also known as collator nodes.
- Users who oversee setting the network’s direction.
- Facilitating price discovery between buyers and sellers.
- Developers that propose Efinity-based applications may be eligible for Community Pool funds.
- Early adopters and inventors benefit from bonding curves and liquidity.
Walled gardens originate from fragmented blockchains and markets, which compete for liquidity and harm the development of the digital metaverse.
The Paratoken standard allows tokens from every other chain, including ERC-721, ERC-1155, and ERC-20. Thus, making Efinity a major hub for all digital assets including fungible and non-fungible both. This way Efinity aims to solve the problem of network effects that exist on other blockchains including Ethereum.
Why is Efinity already so successful?
Simply put, Efinity is powered by Enjin. Enjin’s ecosystem has rapidly expanded to become one of the world’s most large game/app NFT networks. It’s filled with veterans of the NFT sector, from Microsoft’s Azure Heroes to Lost Relics.
Enjin’s technology stack gave them the tools they needed to make that possible. By providing game developers with better tools that were both faster and less costly than anything available on the blockchain market, Enjin made it happen. Several projects have even utilized Enjin’s technology infrastructure to integrate blockchain in as little as 48 hours.
Over 70 game and app developers have already adopted Enjin, with Efinity set to be adopted by nearly all of them.
Efinity Key Features
The Efinity Network will offer a new generation blockchain, thus integrating and improvising many new and old features. As per Efinity’s whitepaper, some of the key features of Efinity Networks follow below.
Every transaction must be signed by a valid key pair before it can be sent to the network.
It is possible to conduct a multi-wallet, multi-signature transaction in which multiple wallets or tokens are involved at the same time. Depending on the type of account, multiple signatures may be required to manage it. A vote can be approved by multiple owners of a single account.
Transfers of Paratokens can be simple or complex, and they may include as many senders and recipients as necessary. Two or more accounts might sign a transfer transaction to execute a trade.
Transaction Fee Delegation
A fee payer signature may be included in a transaction, allowing someone else to take responsibility for the fees before the broadcast is made public.
Companies and entrepreneurs that want to reduce the transaction costs of their customers can greatly benefit from this.
On the parachain, discrete accounts may be established and managed. Private keys are not connected with them.
The address of a discrete account may be used in any transaction that is signed by a wallet that is authorized to utilize the discrete account’s address.
A separate account can be set up with a variety of permissions and roles:
- Can set operators, owners, and admins
- Can set operators
- Can sign for transactions
If multisig security is needed, more than one signature may be needed per role. For example, a company’s stakeholders can use these accounts to securely manage the company’s assets.
Fuel Tanks are separate accounts that can only be used to pay transaction fees. Developers can pay for their customers’ costs by putting EFI tokens in a Fuel Tank that they control. When EFI tokens are put into a Fuel Tank, they can’t be taken out.
Some tokens, tags, transaction types, or users can only use a fuel tank if they are on its “whitelist.”
At any time, the ID of the fuel tank can be given. If its requirements are met, the chosen fuel tank will cover transaction costs. The Fee Payer will pay for any costs that are left over.
A fuel tank may be set up with owners, administrators, and operators who could use it for paying transaction fees.
A fuel tank’s scopes are added to fine-tune its permissions for certain operators, tokens, time limitations, and value limits.
Crafting enables current tokens to be updated, or new tokens to be generated by using a Recipe.
A recipe is an off-chain-generated signed message. Those who have a copy of the recipe can use it on Efinity. Gamifying collectibles can be done with minimal effort thanks to the system in place. Multiple “common” tokens can be exchanged for a rare token in a simple way, which may lead to some interesting game mechanics.
A recipe can be programmed to perform several actions, such as minting, burning, melting, or transferring, and may require the possession of specific tokens.
Any number of restrictions on how many times a recipe can be used, or even a recipe ID being blacklisted, can be set by the recipe creator themselves.
Tags can be used to group related tokens together (for example, covering transaction fees for a game’s entire token collection).
Efinity Swap is an automated conversion function that further simplifies the exchange of Paratokens by enabling frictionless conversion of Paratokens into other Paratokens in order to fulfill existing Bid Orders and Ask Orders involving other Paratokens. Current Bid and Ask orders are utilized to facilitate these exchanges.
The chain enables these automatic swaps for Paratokens that meet a minimum threshold of Bid and Ask orders.
Efinity’s Token Utility (EFI, ENJ)
Efinity’s utility token is EFI, which will be used to pay fees on the protocol, allow decentralized governance, incentivize early adoption of the ecosystem, and reward participants who provide liquidity to the platform.
Efinity Token (EFI)
The primary utility paratoken distributed on the network will be Efinity Token (EFI). All Efinity tokens may be exchanged for others using decentralized on-chain processes.
On-chain orders and trades are charged a transaction fee (about 2.5 percent), which is distributed to the network’s EFI pools. Developers may also charge extra fees to benefit from third-party applications and smart contracts that use Efinity.
15% of the total EFI supply is set aside to automatically recompense collators and pools for their important contributions to the network, including network maintenance, transaction processing, and the creation of new modules and initiatives to grow the network. This component will be progressively unlocked over the course of many years until the whole token supply has been exhausted.
Any EFI holder would be able to propose and vote on governance ideas straight from their wallet, helping to shape the Efinity network’s future.
Enjin Coin (ENJ)
Ethereum’s first utility token, Enjin Coin (ENJ), was issued to the Ethereum ecosystem in 2017. As of right now, over 100,000 wallets hold ENJ, which will be infused and nominated for collators on Efinity using ENJ (including NFTs carrying ENJ).
Through the Efinity network, ENJ gains substantial extra value and relevance. Efinity’s cross-chain bridge allows Enjin Coin to be transferred between Ethereum and Efinity.
The Efinity parachain uses decentralized governance. As per Effinity’s official documentation, Efinity put some effort into outlining its governance procedure. Anyone may submit a proposal, and EFI investors have the option of voting on proposals and referendums.
Every two weeks, the blockchain governance module will evaluate the results of votes on propositions and active referendums. This provides for a minimum of two weeks to examine proposal submissions and then two weeks to vote on them.
The winning and failure of proposals is determined by the community’s decision-making process. Proposals are voted on, with either acceptance or rejection determining their fate. A tie vote will be considered unfavorable/failed.
Proposal Submission Process
The Efinity governance proposal standard specifies that each proposal must follow the same criteria and be submitted to the blockchain via a Proposal Submission transaction.
Anyone who wishes to submit a proposal must first bond 100,000 EFI to their submission. The bond may be boosted by any person until the polls close. After four governance cycles, bonded tokens will be unlocked.
At any time, a maximum of five referendums may be advanced. Bonds with larger denominations will have precedence in the referendum process. It is not permissible to utilize bonded tokens in place of votes.
Efinity encourages users to submit the proposal on the Efinity Proposals Github along with a detailed description and argument in order to gain support and discussion from the Enjin community before submitting their proposal.
Proposal Submission Requirements
First, each proposal must meet the Efinity Governance Proposal Standard and at least one full governance period must pass before it may be accepted (or rejected) for a referendum. To pass, a Proposal must receive a minimum threshold of positive votes (at least 2% of circulating EFI).
Furthermore, to pass, the proposal must be approved by receiving at least 50% positive support. Finally, to pass, at least 100,000 EFI must be bonded to the submission.
Voting on Referendums
When a proposal is approved, the voting period begins. During the referendum, all accepted proposals will be visible to eligible wallets, who will be able to cast their votes. A tiny minimum amount of EFI will be necessary to vote.
Each EFI token is equivalent to one vote, so two accounts that each have 50,000 EFI are identical in terms of voting power. Voting does not need any EFI staking; all votes are taken into account during the final referendum block. During the tally, each token may only be utilized for a single referendum.
Overall, governance ideas can be divided into a two categories. First, Privileged functions enable changes to privileged state functions such as transaction charges, market fees, and minimum or maximum threshold and limit adjustments. Second, code updates include Pallet modifications or the entire parachain’s code.
In addition, the community may use a priority referendum process in Efinity to address abnormal circumstances. A priority referendum, which requires a substantial bond of at least 1,000,000 EFI, can be used to implement emergency changes or hotfixes.
The priority referendum voting procedure will begin immediately and allow for a unique voting period. The maximum bond price might be used as the time limit for voting. If the referendum does not pass, the entire Bonded EFI amount will be lost and distributed to EFI holders.
Efinity is a game-changing innovation that has the potential to disrupt the entire digital asset industry.
Enjin’s Efinity Network provides a scalable, high-performance blockchain built for NFTs. With Efinity, Enjin will be able to power an entire ecosystem of games, apps, and services—all while remaining true to its core values of decentralization, immutability, and security.
Efinity is the next-generation blockchain for NFTs, and we can’t wait to see what the future holds.