What Is Efinity (EFI)?
EFI is the native token of Efinity, which is a Polkadot parachain that was created specifically for non-fungible token (NFT) adoption. It’s a part of the Enjin NFT ecosystem. Efinity allows users to develop their own NFTs, as well as distribute, exchange, buy, and sell them. In essence, the Efinity network is designed to enable creators, businesses, and game developers to reach a broad audience with their own non-fungible tokens.
Make sure to check out the Efinity token price chart above if you’re interested in the current EFI price.
NFTs on Efinity can be created through the process called “crafting.” When employing his method, the developers need to use “recipes,” which are signed messages generated off-chain. The recipe can be used by anyone who has a copy. Besides that, users can also modify their NFTs by merging them with other NFTs. This is especially useful for gamifying collectibles and making more advanced and rare pieces.
The Story of Efinity
The Efinity crypto project was developed by Enjin, which was founded by Maxim Blagov and Witek Radomski. As mentioned previously, Efinity is a Polkadot parachain, however, it only became one in March 2022, after winning the Polkadot parachain auction in December 2021.
Talking about the founders of Enjin, Maxim Blagov is the CEO of the company. He has a degree in computer science. Besides, Blagov has vast experience in UX and UI design, and he is a specialist in interactive app concept development and strategy in the gaming industry.
Witek Radomski is the CTO of Enjin. He has over a decade of experience in technical engineering. Besides, Radomski developed the ERC-1155 token standard, which is a standard that allows traders to efficiently transfer fungible and non-fungible tokens in a single transaction.
The Features of Efinity
One of the features offered by Efinity that is especially important for a wider NFT adaptation is a cross-chain bridge. It allows users to import NFTs developed on other chains to the Efinity network, and vice versa.
Besides that, there’s an Efinity Swap, which allows users to exchange any paratoken through the use of an automatic conversion mechanism. How does it work? In essence, the mechanism automatically converts one paratoken into another, providing users with a hassle-free token exchange.
But what are paratokens? Since Efinity is a parachain of Polkadot, Enjin developed a new token standard called “paratoken.” Tokens based on this standard are compatible with all Polkadot’s parachains, parathreads, and smart contracts. The Efinity token is also based on the paratoken standard.
It’s also important to note that Efinity employs unique addresses that can be generated and used on the parachain known as “discrete accounts.” They don't have a corresponding private key. Any transaction that is also signed by a wallet that is permitted to use the discrete account can utilize the address of the discrete account.
Fuel Tanks are another type of discrete account that Efinity employs. They are used only for transaction fees though. Developers have the option to lower fees for their users by depositing EFI tokens into a Fuel Tank under their management. Once the tokens are deposited, they cannot be withdrawn.
Lastly, considering Efinity’s transactions, it could be said that the numbers are quite impressive since the network is capable of processing up to 1000 transactions per second. Besides that, Efinity’s transactions have low fees and quick speed. They are handled by collator nodes who are rewarded with EFI tokens for their work. However, security is taken care of by Polkadot's Relay Chain validators, therefore, end-users of Efinity are not required to pay for transaction validation.
Use Cases of Efinity Tokens
As mentioned before, the EFI token is the native paratoken of Efinity. In fact, it’s the first paratoken on the network. If you want to see the current EFI price, don’t forget to take a look at the Efinity token price chart above.
In terms of the use cases of Efinity coins, the following are the main ones:
- Payment method. EFI tokens are used to cover transaction fees or any other type of payment within the platform.
- Governance. EFI token holders have the right to influence the development of the Efinity crypto project.
- Reward tokens. EFI tokens are used to reward members of the Efinity network.
- NFT management. EFI tokens are used for the development, distribution, and exchange of NFTs.
Besides, it’s important to note that EFI tokens work in unison with ENJ tokens, which are native tokens of the Enjin platform. ENJ tokens are used for infusing NFTs and other digital assets to give them residual value.
Tokenomics of EFI
The max supply of Efinity tokens is 2 billion. 85% of the supply was distributed to the Efinity development team, the Enjin company, investors, and the ecosystem, while the remaining 15% was set aside for staking pools.
If you’re considering investing in Efinity tokens, make sure to check out the EFI price chart that was mentioned before. It’s important to do that because the Efinity token price tends to fluctuate, thus, it would be beneficial to analyze the main patterns in its fluctuations before making any purchase decisions.
