Enjin (ENJ) Reveals Scaling Solutions to Bolster NFT Growth and Eliminate Fees
The growth of non-fungible tokens (NFTs) and decentralized finance (DeFi) has shown the limitations in the Ethereum network like congestion and high gas fees.
As the popularity of these new projects increases, so does the number of active Ethereum users, doubling to more than a million since January.
This growth has led many developers to the waiting arms of alternative scaling solutions. One of such alternatives is Enjin.
The Issue of Rising Gas Fees
The social gaming platform wants to address the issues that have plagued the Ethereum network, according to a press release. The upgrades, which will focus on multi-chain scaling and interoperability, will allow users to mint and send tokens without paying gas fees.
Enjin says its mission is to bring an end to network congestion and the resulting high gas fees. The platform believes these two issues are hindering the growth of the NFT community.
The first solution, named JumpNet, will be released on April 6, 2021. JumpNet would be built on a Proof of Authority (PoA) consensus protocol. The solution would enable instant, secure, and gasless on-chain transactions.
Its second solution, Efinity, will focus on multi-chain interoperability, making it easy for users to create and move tokens across blockchains without gas fees. This feature will also enable developers and entertainment businesses to leverage the booming NFT market and next-generation tokens without difficulty. Efinity, which is still under development, is scheduled to launch in the latter part of this year.
Enjin has said its native coin ENJ will be the first permissioned token to operate on its JumpNet platform. With its JumpNet Bridge MVP, it will be able to connect Ethereum users to its platform, allowing them to mint, manage, distribute, and trade tokens with ease. This would create a one-way coin bridge between the platform and Ethereum.
But, a future upgrade will see a two-way connection for its ERC-1155 token and ENJ coin, allowing users to execute multiple transactions on JumpNet, Ethereum, and Efinity all at once.
High Gas Fees Affecting Ethereum Network
The Ethereum network has enjoyed immense success due to its ability to allow decentralized applications to be developed on its platform. Decentralized finance (Defi), decentralized applications (DApps), and most recently, NFTs have made Ethereum a hotbed for crypto lovers.
But this has led to network congestion and rising gas fees. Retail users of the Ethereum network are dismayed at the rising transaction costs as it climbed up to $40 at one time. Although it has since fallen to $12, many users are already looking for other solutions.
Projects like Cardano and Polkadot are quickly gaining a customer base due to the issues Ethereum is facing. Cardano’s “Mary” upgrade launched in March saw the peer-reviewed blockchain become a multi-asset blockchain network. This upgrade would allow users to create custom tokens on the Cardano platform without worrying about high transaction fees.
Enjin’s announcement has seen the company’s ENJ coin rally to a new all-time high (ATH) of $1.343, following a 600% increase since the beginning of the year.