Enjin just raised $18.9 million on Polkadot-based blockchain for NFTs.
Enjin was founded by Maxim Blagov and Witek Radomski in 2009. It is a blockchain gaming platform that aims to create digital collectible products that can be possessed by users.
The firm has raised a total fund of $18.9 million in a private token sale. The purpose was to set up a Polkadot-based blockchain mainly for non-fungible tokens. Crypto.com Capital, Hashed, and DFG Group conducted the sale, supported by Hypersphere, Blockchain.com Ventures, BlockTower, Fenbushi, HashKey, Arrington XRP Capital, and many others.
They used a new token called EFI for this operation. EFI’s purpose is to serve as an asset for transaction fees inside the new network, dubbed Efinity.
Enjin is switching to Polkadot to detach the firm from the high fees coming from running on the Ethereum blockchain. Certainly, Enjin believes that this new network will boost scalability.
“Building with Polkadot will enable us to deliver an accessible, scalable solution that empowers everyone to participate in the emerging NFT economy.”Caleb Applegate, Enjin COO
When did their activities start?
Enjin explored the NFTs ecosystem before, when it issued ERC-1155 in 2017, utilized by giants like Nike and Microsoft.
Enjin CTO Witek Radomski said in an interview that they will launch Efinity later this year. It will be a purpose-built blockchain for NFTs as a parachain on Polkadot.
NFTs on the Ethereum blockchain have some issues like “transaction fees, the requirement of ether (ETH), account security, disjointed applications, problematic multisig” are current according to Radomski.
“Finally, each parachain can easily interact with other parachains using XCMP [Cross-chain Message Passing], which creates a powerful network effect.”Witek Radomski, Enjin CTO
The new feature will make it possible for any type of token to be shifted onto Efinity and then used in Polkadot.
What is Polkadot?
Polkadot was founded by Gavin Wood, alongside Peter Czaban and Robert Habermeier in 2016. It is a software created to connect blockchains into a combined network.
The developers that create decentralized systems have to build them from scratch. Polkadot aims to save them time and resources to develop value on top of all blockchains, not just one. Polkadot has its own cryptocurrency, called DOT. It is used to engage in governance decisions, like voting inside the network, but is also utilized as a digital payment method.