Enjin is developing Efinity, a next-generation blockchain for digital assets, built on Polkadot.
Businesses and developers seriously need a platform that can deliver a modern, mainstream and developer-friendly NFT experience. Since the release of Ethereum, there have been attempts to build infrastructure and tokenization around this general-purpose computing blockchain, but there’s an ever-growing thirst for a better solution.
Creators are forced to work with crippling fees, inflexible smart contracts and disjointed interoperability. Adoption of today’s NFTs is still limited to die-hard crypto enthusiasts.
The blockchains that non-fungible tokens live on give actual users no incentives (other than the prices rising), because miners are given the full share of generated tokens. Prices rise, infrastructure companies create silos and paywalls, and it becomes difficult to make real progress in this industry - unless we can unify the community and think a bit differently.
Efinity is built to solve these problems.
Blockchains like Ethereum have become expensive. The average user might pay $7+ to move a single token.
Efinity’s purpose is to be an NFT highway, not a general computing blockchain. Token creation, transfers and purchases are the network’s priority.
Transaction fees on Efinity are designed to stay in the background, and allow users to experience their favorite collectibles without worrying about how the network operates.
Ethereum and Bitcoin reward miners with coins for securing the chain, but there aren’t similar incentives in the NFT industry to fuel growth and development.
Efinity compensates network participants with the EFI token:
- Collator Nodes who run the network.
- Users who govern the direction of the network.
- Buyers and sellers who facilitate price discovery.
- Developers who propose projects built on Efinity are eligible for grants from the Community Pool.
- Early adopters and creators increase their token value with bonding curves and liquidity.
Fragmented blockchains and marketplaces result in walled gardens that compete for liquidity and hurt the growing digital metaverse.
Efinity will be a hub for all fungible and non-fungible tokens. The Paratoken standard accepts tokens from any other chain, including the popular ERC-721, ERC-1155, and ERC-20 standards.
The network that solves the challenge of facilitating the pricing and exchange of NFTs will naturally gain traction, because it will create network effects by attracting increasing volumes of transactions.
Tokens don’t need to be listed for sale or even exist on the network to receive a bid. In fact, users can be compensated for initiating Bid Orders or Ask Orders (as described in the Marketplace section below) and stimulating network usage by initiating transactions which may be completed by other users. This mechanism will naturally attract buyers and sellers to join the network and create network effects by incentivizing users to initiate transactions. This functionality is intended to be further developed by third party apps that facilitate transfers within other platforms such as games or that function as NFT marketplaces.