- 5 Mar, 23
Efinity (EFI) 101: Building a Better Future for Metaverse
Efinity is a metaverse project that offers decentralisation on an enterprise scale. It provides NFTs and Web3 gaming tools that operate with low transaction fees and works in close connection with Enjin Coin. Thus, the ecosystem uses the tools and technology developed by Enjin to offer the mentioned features. The cryptocurrency EFI, which is present in the market, provides power to the ecosystem and is used for expenses across the network. In fact, the platform uses the infrastructure of the Web3-focused blockchain Polkadot.
Therefore, Efinity serves as a Polkadot metaverse infrastructure parachain as a decentralised Web3 and gaming ecosystem. For those who are not aware, Polkadot is a Web3-focused network that aims to provide interoperability between blockchains. Consequently, Efinity also encourages interoperability between blockchains and uses a new standard to allow assets to move smoothly between networks. In this article, we will examine this new-generation project that benefits from Enjin and Polkadot.
Table of Contents
What is Efinity (EFI) and How Does It Work?
Efinity (EFI), a developer friendly Polkadot parachain developed in collaboration with Enjin, aims to facilitate the creation, sale, and purchase of NFTs and provide infrastructure for metaverse gaming platforms. To promote the adoption of NFT technology, the platform is developing new mechanisms and resolving various inefficiencies associated with outdated blockchains that serve as a barrier to entry to Web3. The ecosystem aims to be the one-stop-shop for NFT developers by creating a low-cost, unified ecosystem around NFTs.
Creating and deploying smart contracts on the Ethereum blockchain can be costly. During network congestion, gas fees increase, and transaction speeds slow down. The uncertainty of whether the Ethereum 2.0 upgrade, released in September 2022, will solve this issue remains. However, Efinity was specifically designed to meet the needs of the NFT industry. The platform addresses high gas fees, low interoperability issues, and problems such as tokenization and creating digital collections.
The architecture of the Efinity network provides optimization for asset creation and NFT marketplace interactions, enabling users to buy and sell NFTs with much lower transaction fees. However, most NFTs in the market are chain-specific and lack interoperability. The project aims to address this by supporting multiple token standards from various blockchain networks, strengthening the NFT market. By providing a highly interoperable platform, it removes barriers to creating cross-chain assets.
In addition, the project brings together the robust security of the Polkadot Relay Chain and some of Enjin’s popular Web3 technologies, serving as a network purpose-built for metaverse games and NFTs. Through Enjin Coin and Polkadot’s technologies, it sheds light on many aspects for developers, from interoperability to efficiency. The EFI coin serves as the cryptocurrency that provides power to the network.
Is EFI a Good Investment?
EFI coin is the native token of the Efinity ecosystem and is used as a fundamental reward mechanism for processing the blockchain. This ensures the decentralisation of the network through EFI. To verify transactions on the blockchain, users lock EFI tokens by staking them, which enables fast processing and verification of transactions. In return, users earn new token rewards. Additionally, the cryptocurrency can be used for purposes such as managing the project and NFT trading.
Currently, the cryptocurrency market is going through a tough time. Bitcoin is trading around $17,000, well below the $69,000 it reached in 2021. Due to global inflation and rising interest rates, investors are hesitant to invest in risky assets like crypto. As a result, projects like Efinity, which focus on concepts like metaverse and NFTs, are also affected. EFI coin has dropped from its high of $2.28 in November 2021 and is currently trading at $0.08.
However, despite this, the Efinity ecosystem continues to develop. Analysts expect a relaxation in the crypto market and a subsequent price increase in the coming months. If the global economic situation eases up a bit, crypto assets like Bitcoin and EFI could rise again. However, another crisis like the Russia-Ukraine conflict could lead to a new collapse of risky assets. Cryptocurrencies are risky investment vehicles, so it’s a good idea for investors to consider all possibilities.
If you believe in new areas such as Web3, NFTs, and the metaverse, and if Efinity is a good project for you, there are some exchanges where you can buy EFI coin. Cryptocurrency exchanges such as Huobi, Crypto.com, MEXC, Gate.io, and OKX list the asset. If you want to buy EFI, you can access one of these exchanges and follow the purchasing steps.