Steemit Cryptoacademy Week 12 Homework Submitted To Professor @levycore| Enjin NFT Marketplace| By @bukkyi4u

Introduction

Non-fungible tokens (NFTs) represent a unique form of digital asset which does not have the feature of interchangeability or replaceability. For instance, while 1 Ripple (XRP) can be interchanged for another token, say Bitcoin, and its value would remain unchanged, NFTs cannot undergo this sort of process. An NFT is, therefore, a form of digital data which is stored on a blockchain as a digital asset and which cannot be replaced or interchanged with another.
Hence, it has a unique ownership and is said to be non fungible. There is only one unique and original painting of Monalisa in the world; all others are just mere pictures.

The NFT technology caught the entire crypto world with so much intrigue. This has seen such unprecedented events as the sale of a Nyan Cat GIF at the price of 300 ETH (US$590,000, at that time), they sell of Jack Dorsey Twitter CEO first tweet for 1630.58 ETH (equivalent to US$2.9 million at the time).
While the Ethereum blockchain is at present the most popular for the buying and selling of NFTs, other blockchains are following suit with increasing popularity. Top NFT markets include OpenSea, Enjin, SuperFarm, SuperRare, Foundation, AtomicMarket, Myth Market, BakerySwap, KnownOrigin, etc. I have chosen the Enjin NFT marketplace for my research.

What Is Enjin Marketplace

Enjin is a company that was founded in the year 2009 and is based in Singapore the company has evolved into a social gaming interface with great repute and has physical presence in up to five different continents and many countries of the world. The Enjin NFT marketplace is built and developed on the Ethereum blockchain technology. Actually, it has its own native coin - the Enjin Coin - which was developed in the year 2018. This marketplace provides NFT services which include the buying and selling of NFT digital assets or tokens.

The company claims to have created over 2.1 billion assets on its platform with the use of the Enjin Coin. Also, it has partnered with different top-notch companies to develop important projects on its platform. Such partnerships include deals with Coinmarketcap, Binance and Microsoft (which brought about the Azure Heroes). There were over 287 projects listed on its platform as of March, 2021.

Enjin Marketplace NFT Transaction Fees

Any time you choose to perform a trade or transaction on the Enjin NFT marketplace you will be charged a fee which is a commission. Usually, this is calculated into the total sale amount as a deductible percentage. Purchasing NFTs or selling the digital assets on a Enjin marketplace would attract a nominal fee which would be deducted at the point of transacting or completing the transaction or trade.

Purchasing an NFT on the Enjin marketplace can be done with the use of credit card or PayPal gateways.

The Enjin Marketplace Layout

As has normally been observed on NFT marketplaces, it is a tradition for the marketplaces to present their tradable NFTs, the latest bid for such NFTs, the remaining time for auction, as well as other relevant information on the marketplace interface or layout. Interestingly, different marketplaces equally have different styles and layouts that mark out and give each, its peculiarity and allure. The screenshot below is taken from the Enjin website and serves as the marketplace layout:

Moving in on any particular NFT of choice presents an underlying layout. In this underlying layout there are spaces for a lot of detailed information. Actually, this is more than what has been observed across board on other NFT marketplaces. Hence, the detailed information and data provided gives the prospective buyer or seller enough information to finally decide on whether to buy or sell or not.

How To Buy NFT On Enjin

There are important points you should note and possibly research on before purchasing and NFT. They include:

• Researching on copyright claims to investigate whether your selected NFT is not copyrighted
• Consider points that could depreciate the value of your asset and make them less profitable in the future (including gas fees) and decide on the best way to manage this
• Check the ease of replicating the NFT as producing the same kind of digital asset on another blockchain could reduce its value

To buy an NFT on the Enjin marketplace, there are three important steps to take.

• Create a free account with the service
• Download the blockchain wallet app and create a free wallet
• Move on to the marketplace and complete an order to buy

Step 01:

• Head over to enjin.io and click on 'get started'
• From the page that opens up click on 'get started free'
• Again, click and 'get started' on another page that opens up
• Select one out of the three available projects into which you would want to register your account ('Kovan' in this case)
• Fill in your name, email, password and check the reCaptcha
• Continue to verify your email after signing up

Step 02:

To download the blockchain wallet app and create a free wallet follow the steps below:

• Visit enjin.io and click on Google Play or App Store to download the app
• 'Enable' the app after installing it
• From the page that opens up after enabling the app, click on 'open Wallet'
• Then click 'create wallet'
• Agree to terms
• Add coins and finally select 'create wallet'

Step 03:

To complete an order from the marketplace follow the steps below:

• Visit enjin.io and select 'marketplace'
• Locate the particular NFT of choice and click 'buy'
• To continue with a product with multiple sellers choose a particular seller
• On the next page that opens screenshot the QR code and scan it with your Enjin wallet
• Successfully scanning the QR code would take you to the next page where you have to complete the purchase

NOTE: I do not have enough ETH balance to pay.

How To Sell NFT On Enjin

There are very important and crucial points to consider when undertaking the sale of an NFT in the marketplace. Such important points include:

• Selecting the type of sale, which can be auction, declining or fixed, for your asset
• You should consider the gas or transaction fees to know whether you can afford to pay them with the number of NFTs you want to sell
• You should also remember that the worth of an asset could decrease over time as better and more attractive ones are developed in the market
• Also remember that prices could either decrease or increase periodically. However, your assets will be removed when the deadline set is exceeded.

The process of selling an NFT on Enjin marketplace is quite simple. All you have to do is to create a project on any of the three platforms.

• Having created your account click on the + icon below my projects to add
• Fill out the project name, project description and project image
• Save changes ( this automatically creates your project)
• From the next page that opens up, you will view your project details and the rank of your project (which is 14,447 in this case)

This automatically adds your project to the platform you have chosen. In our own case we used the Kovan' Ethereum platform.

Advantages And Disadvantages Of Enjin Marketplace

Generally, there are a few important advantages and disadvantages to take into account when trading on the Enjin marketplace. Some of them are enunciated below:

Advantages Of Enjin Marketplace

Real life assets can be tokenized

A lot of resources and expertise are already been deployed towards the use of NFT technology to tokenize real world assets. Be that as it may, tokenizing real-world assets on the Enjin marketplace can make it possible for someone to purchase little affordable units of real life assets like real estate or houses as investment with a unique ownership of the particular unit of asset.

Possible purchase of virtual assets

With the Enjin marketplace, virtual assets like domain names and other things of value which cannot be assessed physically but useful in the online marketplace can be tokenized and purchased by users who would hold unique claims to such digital assets. This can already be seen in the non-fungible tokenization of domain names with services like Unstoppable Domains and the Ethereum Name Service.

Good for maintaining proof of identity

Maintaining important and legal records which can include medical bio-data, educational qualifications, academic resume and work history data can be quite bulky. The use of NFT offers a digital solution to this problem in a stress-free way. More so, better and verifiable ways to tokenize these data with NFTs can give better control over them. Interestingly, this can be done on the Enjin marketplace and is an added advantage.

Copyright claims to artworks can be established

With the use of Enjin marketplace it would become a lot easier to tokenize artworks as NFTs. When this is done, the blockchain automatically records the unique ownership of such a digital asset. As such, copyright is established for artworks which could have otherwise not been copyrighted. In this way, intellectual property can be protected and preserved. More so, artists would get to receive more value for their works as third-party interferences are eliminated in the sales of their works.

Disadvantages Of Enjin Marketplace

Volatility of purchased assets

Generally, crypto assets are known to fluctuate so much in the value of their prices. The digital assets or NFTs offered on the Enjin marketplace are not immune to this volatility in the market prices of cryptos. Perhaps this is a strong reason for ardent suspicion and restraint for its adoption by a great many people.

Uncertain legal implications

Purchasing NFTs or tokenizing one's own asset as an NFT - which can be an artwork, image, video, application,etc - could come with a lot of uncertain legal implications. Take for instance, in the case of a virus attack or in situations where the tokenized NFT becomes devalued due to some sort of system malfunctioning or anything of that nature, the question arises as to who will bear the loss between the owner and the platform.

Uncertain copyright claims

This could be a major disadvantage that could be experienced on the Enjin marketplace. Really, no one can be 100% sure of the copyright claims or licence ability of some of the tokenized assets which could be images, videos, artworks and so on. Purchasing these assets could put one at risk of facing copyright charges if the copyright claims are not properly verified before tokenization or purchase.

Ecological uncertainties

Generally, the world is driving towards less carbon emission. This means that a lot of carbon-emitting compounds or items are now being jettisoned. Purchasing a tokenized NFT over the Enjin marketplace does not give any guarantee of the ecological friendliness of such purchased items which could still be real life assets, after all.

Conclusion

NFTs present quite a very wonderful opportunity for leisure and importantly for the tokenization of real assets. While its disadvantages can not be overlooked its advantages far outweigh the demerits. However the disadvantages which include copyright claims must be looked into to provide a more stable marketplace for the sales and purchase of these digital assets.

Thanks to professor @levycore for such a wonderful lesson on NFTs.

(Note:Unless otherwise indicated, all screenshots are taken from the enjin.io marketplace)