Efinity ($EFI) - Most Hyped NFT Blockchain

Boxmining avatar Boxmining
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Description

Efinity ($EFI) is trying to solve some of the problems faced by the NFT space. It will provide a user-friendly platform for the mainstream NFT experience. Also, it helps developers to build their NFTs...

AI Analysis

This video dives deep into Efinity ($EFI) and Enjin ($ENJ), two projects aiming to revolutionize the NFT and metaverse space. It explains how Efinity, a new blockchain, is designed to solve the significant issues of high costs and congestion that plague current NFT platforms built on general-purpose blockchains like Ethereum, making NFTs more accessible and user-friendly for everyone.

Here's a breakdown of what's happening with Enjin and Efinity:

* The Current State of Metaverses and NFTs:
* There's huge hype around NFTs and metaverses like Decentraland and Sandbox, but a crucial underlying problem often overlooked is the foundation they're built on.
* Many metaverses use Ethereum, which gets incredibly expensive and congested, creating a massive barrier to mainstream adoption. It's like a city with constant traffic jams, making it tough to get around.
* We're seeing AAA game developers, like Ubisoft with Quartz for Ghost Recon, starting to experiment with NFTs, but they're still in an early phase and, frankly, "not seeing the full picture" of what's possible.
* It's an "experimentation phase," much like the early internet days, where people know there's a huge future in connecting players and giving in-game items real value through NFTs.
* Axie Infinity, for example, has already generated billions of dollars, yet it's "barely scratching the surface" of what blockchain gaming can achieve. My mind is blown thinking about how much further this can go!
* The vision extends beyond just trading JPEGs; it's about creating deep, immersive, and collaborative game experiences with millions of players, where NFTs facilitate unique economies and collector interactions. The goal is to have a "Pokemon Go" moment for blockchain gaming.

* Enjin's Role and Vision:
Enjin isn't building a single metaverse game; instead, it's constructing the infrastructure* for the metaverse. Think of it as providing the tools and framework for thousands of games, worlds, and experiences to be built.
* Enjin has developed a suite of tools, including an awesome wallet, a platform (now moving to open source for developers to easily host themselves), and direct plugins for popular game engines like Unity.
* This comprehensive toolset provides developers with the knowledge, inspiration, and vision to easily integrate NFTs and blockchain mechanics into their games.
* Enjin already has about 100 adopters, with 90% being game developers. Beyond gaming, even large organizations like Microsoft (for rewarding its Azure community) and the United Nations are exploring using Enjin's tools for gamification and social good.

* Efinity: The Purpose-Built Blockchain:
* This is where Efinity comes in. While Enjin provides the tools and ecosystem, Efinity is the new, dedicated blockchain layer.
* Efinity is a "parachain" on Polkadot, a network masterminded by Gavin Wood (one of Ethereum's co-creators), which aims to be an "internet of blockchains."
* The core idea behind Efinity is to remove the massive friction points of older blockchains like Ethereum. We're talking about making the user experience as smooth as installing a game on your phone or console – just click a button and play, no complex wallet setups or seed phrases needed. This alone could stop 95% of users from bailing!
* Key Difference: Ethereum is a general-purpose blockchain, so it's not optimized for any single use case, leading to inefficiency and high costs (imagine paying $400 to mint an NFT!). Efinity, however, is custom-built specifically for NFTs and games.
* Think of Efinity as an "ASIC for NFTs" – it's incredibly efficient and "orders of magnitude cheaper" than Ethereum for anything related to NFTs. It can handle hundreds of millions, even billions, of NFTs in seconds.
* Efinity also allows game developers to subsidize transaction fees for their players, making in-game actions virtually free for the user, as the developers can factor these costs into their overall monetization strategy.

* Solving the NFT Pricing Dilemma:
* A big challenge Efinity is tackling is the lack of a standardized price valuation mechanism for NFTs, especially for common items that aren't multi-million dollar sales.
* Efinity introduces an on-chain price valuation mechanism. Users can place "stink bids" (estimates) on any item, even if it's not listed for sale.
* Say you like my NFT; you could offer me "six bucks" for it. Someone else might then come along and say, "600!"
* Users are incentivized to put accurate estimates because they receive a reward if an item they've bid on eventually sells.
While they have to put down some* value, they only "lock in" funds for their highest active bid, allowing them to estimate many items.
* This system creates a "virtual floor" for items and is an experimental way to determine true market value, even for items that are part of a larger category (e.g., bidding on all "golden swords" in a game, not just one specific sword).

* The Crucial Polkadot Parachain Auction:
* To launch Efinity and gain a secure, dedicated slot on Polkadot, Enjin needs to win a "parachain auction." Winning means they secure a piece of Polkadot's network security for nearly two years.
* This is a competitive auction where projects vie for limited slots by having their supporters "contribute" (lock up) their DOT tokens.
* It's a long commitment – the DOT gets locked for 96 weeks (almost two years) – but in return, contributors earn EFI tokens, and their original DOT is returned at the end.
* Efinity is currently "neck and neck" for the fifth and final slot in the current auction. Winning this slot would be "huge" for the gaming and NFT ecosystem, establishing Efinity as the first NFT and gaming chain on Polkadot.
* Important Dates: The crucial "candle auction phase" starts on December 11th, and the winner will be decided five days later, around December 16th. During this time, Efinity needs to maintain the top bid.
* You can contribute DOT to the crowd loan directly via Polkadot or through major exchanges like Binance.

Transcript

With all the hype surrounding NFTs and metaverses recently, with projects such as Decentraland and Sandbox taking front and center stage of the metaverse discussion, there's one aspect that is super important but nearly never discussed by anyone, which is the foundation on which these projects are built. You see, a lot of metaverses are built on Ethereum, which is great, but it does get expensive to use over time, and over time this presents a huge barrier to adoption. What's interesting is tha...