Thread by @OneYoungSkilly

(1) Recently, #NFTs have gained *a lot* of attention from not just crypto-evangelists, but more mainstream outlets. @enjin are a leader in the #NFT space, but what make their approach and solutions to #trueownership of digital assets so special? A thread! #enj $ENJ #evENJelist

(2) First thing's first; if you're still not 100% sure on *what* NFTs actually are (and why they matter and hold value), it's worth reading these handy-dandy beginner's guide that I wrote. #enj $ENJ
enj.in/nfts-value
enj.in/nft-guide

(2a) NB: While @enjin's heritage is in gaming, it's important to note that $ENJ-backed #NFTs span a wide variety of usecases: @Azure use them to encourage and reward developer engagement enjin.io/powered-by-enj… and @binance use them for digital community collectibles

(3) #ERC20 ENJ is minted into #ERC1155 #NFTs, enhancing them in multiple ways. You can think of #ENJ as a digital raw material for asset creation, that can be recovered if the asset should ever be destroyed. Benefits of $ENJ and the wider @enjin ecosystem are numerous:

(4) Reserve Value: The #NFT has a guaranteed real-world value in player economies equal to at least the value of its $ENJ backing. You have to remember that this represents the absolute *minimum* value an asset will ever have; like melting down a sword to sell the steel #enj

(4a) $ENJ backing of assets also benefits developers because customers who buy something with a guaranteed recoverable value should be more willing to pay for it than customers faced with an equivalent asset that has no such guarantees. All things being equal, backing = benefit

(5) In reality, these digital assets will likely have a higher value than the $ENJ backing, with gamers, owners, collectors assigning additional value to a #NFT based on various factors such as rarity, design, utility, and even just human factors like sentimentality #erc1155 #enj

(6) From a tokenomics design perspective, minting fungible #ERC20 ENJ into non-fungible #ERC1155 tokens also locks the $ENJ out of circulating supply until the #NFT is destroyed (i.e. melted) - which may never be the case due to the various factors mentioned above. #meltismurder

(7) So, by design, as long as more #NFTs are maintained than destroyed, $ENJ will have a deflationary token supply as more and more backed #ERC1155 assets are created. More than 1% of all ENJ is already locked into assets, and that's before scalability & true mainstream adoption

(7a) Just FYI, the #ERC1155 standard is optimised for games and collectibles, allowing developers to create both one-off #nonfungibletokens, or specific issuance runs of other digital assets, all enforced by smart contracts with multiple possible supply models #ethereum #enj $ENJ

(8) Provable Scarcity: a reserve value means that assets cannot be created in infinite amounts by developers, preventing economy-breaking situations like the #TF2 bug last year. $ENJ backed #NFTs protect any economy where asset scarcity is a source of value from hyperinflation

(9) Transparent Provenance: Having an NFT-optimised blockchain explorer like EnjinX.io, the #ERC1155 token standard, and the #EnjinWallet allows people to easily track supplies and creators of assets to ensure authenticity and ownership trails #enj $ENJ

(10) Another cool part of the wider @enjin ecosystem around #NFTs and digital assets is the #EnjinBeam feature in the wallet, allowing easy distribution of assets via the simple scan of a QR Code enjin.io/software/beam #enj $ENJ

(11) In addition to this technological infrastructure optimised around #NFTs, @enjin has created the first real gaming (and digital asset) Multiverse, bringing the additional benefits of #interoperability into the wider ecosystem #enj $ENJ

(12) Interoperability: $ENJ can already be used across numerous games and platforms in the @enjin Multiverse. It's a lot like #ReadyPlayerOne; reading assets from the decentralised blockchain allows multiple developers to integrate them and interpret them to fit their worlds

(13) Asset Interoperability (check out the Multiverse Shield in @9livesarena here) gives additional utility to #NFTs, creating new #gamedesign or brand collaboration opportunities, allowing developers to leverage each others communities and assets for mutual benefit #enj $ENJ

(14) $ENJ acts as insurance against failure and complete loss of time: even if games or platforms fail, servers shuts down, accounts gets banned or nobody wants to trade the #NFTs they can still carry value for the owners by either recovering the reserve value through melting

(14a) Interoperability (thank you, decentralised and widely-adopted #ethereum #blockchain!) also acts as insurance. A game shut down or an artist that stopped producing content? Win instant goodwill from their fanbase by integrating those assets! #enj

(15) Finally, a point on true ownership of #NFTs; the suite of @enjin products in the $ENJ ecosystem includes an NFT-optimised wallet that (unlike those of some other projects) is non-custodial enjin.io/software/wallet

(15a) Why does this matter? Because *you* remain in full control of your private keys, and thus have actual ownership of the assets on your account. If you use a custodial wallet, there's always a chance the custodian goes rogue and takes your assets.

(15b) Plus, even if you're not into NFTs(😱), @enjin built a pretty damn fine wallet with multi asset support ( $BTC $ETH $LTC $BNB and now $DOGE) that should go a long way towards demonstrating the competence and professionalism of the team.

(16) Hopefully all of this has provided a bit of an insight into what makes @enjin so special in the #NFT space: reserve value for assets, tokenomics, adoption incl. game developers, Microsoft and Binance, a full ecosystem supporting #NFTs, and awesome interoperability #GoENJGo