Efinity

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Discover Efinity's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Efinity?

Efinity (EFI) is a cryptocurrency token deployed on the Polkadot blockchain, designed to provide a modern, developer-friendly NFT experience. It aims to improve the user experience by shifting the focus away from transaction fees, enabling frictionless transactions and cross-chain interoperability. EFI is the main utility token on the network, used for transaction charges, prizes, and liquidity purposes, with a total supply of 2 billion coins.

How is Efinity used?

Efinity (EFI) is a utility Paratoken deployed on the Efinity network, which is a Polkadot-based blockchain designed for digital assets. The EFI token serves several purposes:

  • Transaction Fees: EFI is used to pay for transaction fees on the network. The cost of these fees varies depending on the type of transaction, such as transfers, bridges, bid orders, ask orders, and smart contracts.
  • Governance: EFI holders can participate in the governance proposal submission and voting process directly from their wallets, influencing the direction of the Efinity network.
  • Staking: EFI tokens can be staked to secure rewards for users.
  • Purchasing Assets: EFI can be used to purchase assets, including NFTs, on the Efinity Marketplace.
  • Fuel Tanks: Developers can deposit EFI tokens in Fuel Tanks to subsidize transaction costs for their clients.
  • Delegation of Transaction Fees: EFI enables a third party to accept responsibility for fees prior to broadcast, making it advantageous for businesses and producers who want to cover transaction expenses for their users.
  • Efinity Swap: EFI facilitates frictionless automatic conversion of paratokens into other paratokens to fulfill active ask and bid orders involving other paratokens.

Overall, the EFI token plays a central role in the Efinity ecosystem, supporting various activities and transactions within the network.

How do I store Efinity?

To store Efinity (EFI) tokens, you have several options:

  • Ledger Wallet: You can store EFI tokens on Ledger under the ETH ERC-20 token wallet.
  • Coin98 Wallet: Once supported, you can store EFI tokens on the Coin98 Wallet.
  • Atomic Wallet: Download the Atomic Wallet app for desktop or mobile to manage your EFI tokens securely. This wallet supports over 1000 other coins and tokens, offering features like private keys encryption, 24/7 support, and no registration or KYC requirements.

These wallets provide secure and convenient ways to store your EFI tokens.

How to buy Efinity?

To buy Efinity (EFI) tokens, follow these steps:

  1. Choose a Reliable Exchange: Select a trusted and reputable cryptocurrency exchange that supports Efinity (EFI) trading. Some popular options include KuCoin, Poloniex, and MEXC.

  2. Create and Verify Your Account: Sign up for the chosen exchange and verify your email address, phone number, and identity. This process typically takes a few minutes.

  3. Add Funds: Deposit money into your exchange account using methods such as bank transfers, credit cards, or other cryptocurrencies. Ensure you have sufficient funds to cover the purchase.

  1. Buy Efinity Token: Navigate to the exchange's trading platform, select Efinity Token (EFI) from the list of available cryptocurrencies, enter the desired amount, and confirm the purchase.

Alternatively, you can also use decentralized exchanges (DEXs) that support the Polkadot network. For this, you will need a compatible crypto wallet like Trust Wallet and follow the steps to connect it to the DEX and trade your Ethereum for Efinity Token.

Remember to always research the exchange and its fees before making a purchase, and ensure you understand the associated risks with investing in cryptocurrencies.

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History of Efinity

Efinity (EFI) is a cryptocurrency developed by Enjin, a company founded in 2009. Initially, Enjin focused on creating an ecosystem for non-fungible tokens (NFTs) on Ethereum, but they shifted their focus to Polkadot in 2021. The EFI token was launched on August 4, 2021, and was listed on several major exchanges, including OKEx, Blockchain.com Exchange, Crypto.com, and CoinList.

The EFI token is designed to facilitate transactions of NFTs across various industries. It aims to overcome the barriers of high fees and lengthy transaction times associated with Ethereum, making it more accessible to consumers. Efinity operates as a parachain within the Polkadot ecosystem, allowing it to interact with other blockchains seamlessly.

The EFI token has a total supply of 2 billion tokens, with 15% set aside for nominator staking and pools as rewards for managing the parachain over the first 8-10 years. The token's governance model allows holders to participate in voting on proposals, ensuring community involvement in the development of the platform.

Despite its initial promise, Efinity has faced criticism and skepticism from some users, who question the team's ability to deliver on their promises and have raised concerns about the project's legitimacy.

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How Efinity works

Efinity (EFI) is a cryptocurrency project built on the Polkadot blockchain, specifically designed to facilitate the creation, trading, and management of non-fungible tokens (NFTs). Here's an overview of how it works:

Network Structure

Efinity operates as a parachain within the Polkadot ecosystem, leveraging the scalability and security of Polkadot. This allows it to connect multiple networks and enable seamless interactions between them.

Paratokens

Paratokens are digital assets designed to interact within the Polkadot and Kusama ecosystems. They are highly flexible and can be staked, traded, or used to meet specific regulatory requirements. Developers can create Paratokens that can be used for various purposes, such as governance or utility.

Marketplace

The Efinity Marketplace is a central hub where users can trade tokens, NFTs, and share ideas. It allows for direct peer-to-peer transactions, enabling users to show off their collections or trade for other NFTs. Additionally, users can trade their in-game assets for other popular cryptocurrencies, unlocking real-world profits.

Consensus

Efinity uses a consensus mechanism based on Polkadot Relay Chain Validators. Special-purpose collator nodes process transactions and run instances of the virtual machine. To qualify as a validator, users need to stake a significant amount of EFI tokens. The network rewards validators for their contributions but can also slash their rewards for poor performance or malicious behavior.

Efinity Token (EFI)

EFI is the main utility Paratoken on the network. It serves multiple purposes, including:

  • Paying fees for transactions and other network activities
  • Purchasing assets and NFTs
  • Staking for validation and governance
  • Participating in governance proposals and voting
Tokenomics

The maximum supply of EFI is 2 billion coins. A portion of these tokens is reserved for rewarding collators and pools for their contributions to the network, including network upkeep and transaction processing. This fraction will gradually become available over time.

Trading and Governance

EFI holders can participate in governance by submitting and voting on proposals directly from their wallets. The token can be traded on various exchanges, and its distribution is designed to incentivize network participation and growth.

Interoperability

Efinity aims to promote interoperability between blockchains, allowing assets to move seamlessly between networks. It uses a novel token standard to enable frictionless transactions and is designed to be compatible with Ethereum, enabling cross-chain token swaps.

Features and Tools

Efinity provides a suite of tools and features to make Web3 gaming and NFT development more accessible. It includes features like Fuel Tanks for subsidizing transaction fees, delegation of transaction fees, and Efinity Swap for automated paratoken conversions.

Overall, Efinity is designed to provide a highly scalable and interoperable platform for NFT creators, traders, and gamers, leveraging the power of Polkadot and Enjin's Web3 technology.

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Efinity's strengths

The Efinity Token (EFI) has several strengths that make it a promising cryptocurrency:

  1. Scalability: Efinity is designed to handle a high volume of transactions, with the ability to process 700-1000 transactions per second, making it much faster than Ethereum, which can only handle around 15 transactions per second.

  2. Low Fees: The platform is built to have lower transaction fees compared to other blockchain systems, making it more cost-effective for users.

  3. Interoperability: Efinity is highly interoperable with Polkadot and Enjin ecosystems, allowing for seamless asset transfer between networks without friction. It also aims to be compatible with Ethereum through a cross-chain bridge, further expanding its reach.

  1. Fast Confirmation Times: Transactions on Efinity are confirmed in just six seconds, ensuring quick response times for users.

  2. Fuel Tanks: The platform uses special discrete accounts called "fuel tanks" to subsidize NFT transactions for users, making it more user-friendly.

  3. Crafting Features: Efinity provides an easy way for users to create new tokens using preset NFT factors, speeding up the creation process, especially for game developers.

  1. Rewards and Governance: The protocol rewards all network participants, including buyers, sellers, NFT creators, collectors, and network nodes, using its native token, EFI. Users can also stake EFI tokens to earn passive income.

  2. Security: Efinity leverages the security of the Polkadot Relay Chain and uses special-purpose collator nodes to process transactions, ensuring a secure and responsive environment for users.

These strengths position Efinity as a robust and user-centric platform for NFT and metaverse applications.

Efinity's risks

Efinity Token (EFI) carries several financial risks that investors should be aware of. Here are some key points to consider:

  1. High Risk/Reward Score: InvestorsObserver has given EFI a high Risk/Reward Score, indicating that it is a relatively high-risk investment. This score is based on factors such as recent changes in volume and market capitalization, which can affect the token's price volatility.

  2. Market Trends and Adoption: The future price of EFI largely depends on market trends, technological developments, and the overall adoption of NFTs. If these factors do not favor the token, its value could decline.

  3. Scalability and Security: As a Polkadot parachain, Efinity relies on the scalability and security of Polkadot. Any issues with Polkadot could impact EFI's performance and value.

  1. Fraudulent Activities: There have been reports of fraudulent activities related to EFI, such as the "Pig Butchering" scam, where investors are lured into investing in the token through false promises. It is essential to exercise extreme caution and verify the legitimacy of investment platforms before investing.

  2. Regulatory Risks: As with any cryptocurrency, EFI is subject to regulatory changes and potential restrictions. If governments or regulatory bodies impose strict regulations, it could negatively impact the token's value and usability.

  3. Technical Risks: The Efinity blockchain and its infrastructure are still developing. Technical issues or bugs could arise, affecting the token's performance and investor confidence.

  1. Volatility: Cryptocurrencies are known for their price volatility. EFI's price can fluctuate rapidly, resulting in significant losses if not managed properly.

It is crucial for investors to conduct thorough research, understand these risks, and consult with financial advisors before making investment decisions.

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Did Efinity raise funds?

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Efinity’s team

  • Enjin: The team behind Efinity, a cross-chain NFT network powered by the Efinity Token (EFI) and built on Polkadot.

Whalee AI

The fundamental analysis assistant for crypto value investors.

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